Question
13.74 Management of a soft-drink bottling company has the business objective of developing a method for allocating delivery costs to customers. Although one cost clearly
13.74 Management of a soft-drink bottling company has the business objective of developing a method for allocating delivery costs to customers. Although one cost clearly relates to travel time within a particular route, another variable cost reflects the time required to unload the cases of soft drink at the delivery point. To begin, management decided to develop a regression model to predict delivery time based on the number of cases delivered. A sample of 20 deliveries within a territory was selected. The delivery times and the number of cases delivered were organized in the following table and stored in
Delivery Delivery Number Time Number Time Customer of Cases (minutes) Customer of Cases (minutes) 52 32.1 11 161 43.0 64 34.8 12 184 49.4 73 36.2 13 202 57.2 85 37.8 14 218 56.8 95 37.8 15 243 60.6 103 39.7 16 254 61.2 116 38.5 17 267 58.2 121 41.9 18 275 63.1 143 44.2 19 287 65.6 157 47.1 20 298 67.3Step by Step Solution
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