HandSoap Inc. Sales The database are sales transactions at a sales order line level, so that one order can have more than one line. The time period is 1/1/2015 to 3/31/2015. Goal - Perform a material rationalization analysis, that is determine which materials should be kept in the portfolio and which should be eliminated. o Get rid of low profiting materials or customers - What is the projected sales for April 30 and what is your confidence in the value? - Perform a customer rationalization analysis and determine which customers should we continue to sell to. o Get rid of low profiting customers o RFM - recency, frequency, and monetization - What is the optimum inventory level? o Based on demand and carrying costs o Optimization problem - What is the optimum order quantity? o Economic Order Quantity (EOQ) - What is your recommended customer group hierarchy? - What is your recommended material group hierarchy? Minimum Suggested techniques - Cluster analysis - Regression - Segmentation by customer groups or material groups - Association Data in the excel sheet: - Materials = 3,563 - Customers = 3000 approx - Order lines 227,276 - Time 1/1/2015 - 3/31/2015 - Minimum order size