Case Study 1: Analysis of the Distribution OP TEAM – D Hanshi Zhang Onochie Fan-Osuala Adriana de la Torre Diana Arias Andres Martinez

Daily Inventory Sold Problem 1 Below we can see in detail the behavior of each inventory sold per quarter in each region o First three pages shows the overall moving of inventory for each day of the combined 3 quarters. o Each page displays one inventory o Each page shows the specific item’s quarterly (3Qs) and regional sales (3 regions) o Each page shows the specific item’s overall sales for all 3 quarters combined o Each page shows the side-by-side comparison of all the teams

Daily Inventory Sold Problem 1 Based on the graphs we can see that during Q1, all the teams cleared out if not all, most of their inventory. We also see that replenishing was not allowed in Q1 so all the teams replenished at the beginning of Q2 In Q2 and Q3 we see that all teams sold well on two main products: F01 and F04 and we see a huge fluctuation in these two items due to selling out and replenishing. The rest of the products sold very little for all teams

Daily Sales Value Problem 2 Below we can see in detail the behavior of the annual income (sales value) for each inventory sold per quarter in each region o Each page displays one inventory o Each page shows the specific item’s quarterly (3Qs) and regional income (3 regions) o Each page shows the side-by-side comparison of all the teams

Daily Sales Value Problem 2 Based on the graphs we can see that our team (DD) sold more items than any team for all regions overall. Below are graphs displaying the regional overall sales in each quarter and also all three quarters combined.

Daily Price Change Problem 3 Each page displays one item and includes three graphs: o Price Variation – displays a comparison between teams of when and how much the price of each item were adjusted o Quantity – displays a comparison between teams of how much quantity were sold of the specific product o Marketing – displays a comparison between teams of how much money was spent on marketing for the specific product The data displayed shows all three regions combined together The data displays all three quarters

We can see the lowest sales price in the ‘Price Variation’ sells the most product in the days immediately following the change o This happens because the system takes a day to reflect on the change We also see that our team fluctuated in price change much more than the winning teams (which is not good because the greater the fluctuation the harder to keep up with the change in quantity sold) In marketing, we can tell that marketing is an important aspect for the team with the lowest price. o For example, looking at F06, team FF started to drop their price on day 7, and kept it low all the way to day 13. They sold well at the lowest price but when they started investing heavily into marketing from days 11-12, they sold even better on days from (immediately following increase in marketing) Daily Price Change Problem 3

Daily Market Investment Problem 4 Below are graphs showing the amount of money spent on Marketing o 1L products and 500mL products are split into two sections o Comparisons within each graph are done through teams o Each graph shows the marketing spent for each quarter in one particular region

1L Products

500mL Products

Daily Market Investment Problem 4 Based on the overall market investment graphs below, we can see that our team spent the most in marketing. This is mainly due to Q3 when we were desperately trying to move certain products that wasn’t selling.

Overall Ratio and Comparisons Correlations Below are graphs showing various types of ratios, each displaying the comparison per quarter and between all teams o Overall Sales vs Cost vs Marketing vs Profit o Daily Revenue to Profit Ratio o Revenue to Profit Ratio per Quarter o Quarterly Marketing to Profit Ratio o Quantity to Marketing Ratio

How did team FF win? why did we lose? We can see that the winning team (FF) won because they had the best sales to profit ratio Although our team sold the most inventory, we sold them at such a low price that we didn’t get a good amount of profit comparing to the other teams. We also spent way too much on marketing and didn’t make enough money from sales to recover our loss. what is our future strategy? Cut your losses. If certain products aren’t selling well, then there is no need to spent money on marketing or producing more. Focus on selling what the market wants We also discovered that no matter what price you set your items, there is always a market for F01 & F04 as long as we set the prices strategically: o Start off your prices very low with little profits earned then gradually increase them but keep the change consistent o Wait 3 days to see the accurate change in quantity sold before deciding to re-adjust the price