Modeling of Supply Chain Data using SPSS

&
Optimization Problem using lingo

Submitted by:-
Aditya Juneja
(2014SMT6620)
Problem Description
A national level bookstore wanted to know if opening up of an online portal helps
increase its sales of books. Using the help of an intern, the bookstore created a
sample website only to be launched in just one area of Delhi, while keeping the brick
and mortar store in another. They record the sales from both the channels. After 6
months they check the sales from each channel.

The data is stored in

Problem Statement

Can we conclude data the distribution channel adopted affects the sales?
I/P Data Screenshot
Validating Assumptions
Levene’s Test: It shows a high
value of significance, hence data
has homogenous means.

O/P File for

validating
assumptions

Kolmogorov-
Smirnov’s Test
confirms that the data
is normal. Hence, we
can proceed for anova
Hypothesis
Null Hypothesis
H0: The distribution channel adopted by the bookstore does not impact the sales of
the books.

Alternative Hypothesis
H1: The distribution channel impacts the sale of the books.

Level of Significance: α = 0.05

O/P Screenshot
Result
1. N” in the first column refers to the number of cases used for calculating the
descriptive statistics. These numbers being equal to our sample sizes tells us that
there are no missing values on the dependent variable.
2. The mean gives the average sales on each of the distribution channel adopted
by the book store i.e. online and offline.
3. The p value (denoted by “Sig.”) is .000. This means that if the population mean
weights are exactly equal. The null hypothesis is usually rejected if p < .05 so we
conclude that the mean sales on each of the distribution channel is not equal. In
one of the methods the bookstore gets better/higher sales.

As P value = 0.000 < 0.05, hence null hypothesis rejected

1. F value = 125.84
2. df1 = 1
3. df2 = 54
4. P value = 0.000

Output File:
Optimization Problem
Problem Description:

The Frito Lay Company produces two types of Family Chips, the “American Onion”
and the “Tomato Tango”. There are two production lines, one for each chips. The
American Onion production line has a capacity of 60 packets of chips per day,
whereas the capacity for the Tomato Tango production line is only 50 packets of
chips per day. The labor requirements for the American Onion set is 1 person-hour,
whereas the Tomato Tango requires 2 person-hours of labor. Presently, there is a
maximum of 120 man-hours of labor per day that can be assigned to production of
the two types of chips. If the profit contributions are $20 and $30 for each American
Onion and Tomato Tango chips, respectively, what should be the daily production?
LP Formulation
Our major objective is as follows:
Maximize Profit contribution
subject to
1. American Onion production less-than-or-equal-to American Onion capacity
2. Tomato Tango production less-than-or-equal-to Tomato Tango capacity
3. Labor used less-than-or-equal-to labor availability.
A = units of American Onion to be produced per day
C = units of Tomato Tango to be produced per day.
Further, we measure: Profit contribution in dollars
American Onion usage in units of American Onions produced
Tomato Tango usage in units of Tomato Tango produced
and Labor in person-hours.
Objective Function: Maximize 20A + 30C (Dollars)
subject to Constraints
1. A <= 60 (Astro capacity)
2. C <= 50 (Cosmo capacity)
3. A + 2C d<=120 (Labor in person-hours)
Output Using Lingo
Output Interpretation
The output has three sections
1. An informative section
2. A “variables” section
3. A “rows” section

The second two sections are straightforward. The maximum profit solution is
to produce 60 American Onions and 30 Tomato Tangos for a profit
contribution of $2,100. This solution will leave zero slack in row 2 (the
constraint A <= 60), a slack of 20 in row 3 (the constraint C <= 50), and no slack
in row 4 (the constraint A + 2C <= 120). Note 60 + 2 *30 = 120.
THANK YOU