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Posted on Oct 19, 2024

Problem 1. ABC Classification (14 points) Imagine you are the owner of a small, entrepreneurial start-up. You feel stretched to the snapping point by the

Problem 1. ABC Classification (14 points) Imagine you are the owner of a small, entrepreneurial start-up. You feel stretched to the snapping point by the demands of your various customers. Trying to keep everyone happy, you have never really prioritized your customer relationships. Apply Pareto's Law to the following dataset of your customers and provide answers to the four questions listed below. Customer Sales Abboe Laboratories SIO 100 2 Actavis Inc $5.00 3 Agent $19.00 4 Allergie 529.570 $ Amgenine $165 6 Baxter International 54,393 7 BIOGENIDEC Inc 52.291,000 Bristol-Myers Squibb $25.910 Carson 522110 10 Cene I Cavidies plc $21.400 12 Dentsply International $1,467 13 Expos Scripts 579,970 Hilcad Sciences $12.370 55 Humane 56.256 16 Jolo. 33,420 17 Life Technologies $198.00 18 McKesson Coop S1.237.000 19 Merck & Co 5242.500 20 Palemon Companies $1.076 $1,853,000 22 Ouen Daghosts $4.704,000 23St Jude Medical $39,290 24 Tenct Healthcare $73.140 25 United Reality Group 540,000 26 Water Corporation $13.90 27 Zimmer Holdings $13.500 21 Pertigo (a) Which customers are your "A." "B," and "C" customers? (5 points) Show detailed analysis for the classification. It is recommended that you conduct the ABC classification in Excel. Submit your spreadsheet as an attachment. Multiple classifications can be considered correct for this case. You are welcome to show multiple possible classifications, but only one correct classification is sufficient to gain the credit. b) Why did you decide to draw the dividing lines where you did? Describe the classification result AND explain the logic. (4 points) Under what circumstances would you consider promoting a "C" customer to a higher classification? (2.5 points) Why might you demote an "A" customer to a lower classification? (2.5 points) Customer 1 Abbott Laboratories 2 Actavis Inc 3 Agilent 4 Allergan Inc 5 Amgen Inc 6 Baxter International 7 BIOGEN IDEC Inc. 8 Bristol-Myers Squibb 9 Carefusion 10 Cerner 11 Covidien plc 12 Dentsply International 13 Express Scripts 14 Gilead Sciences 15 Humana Inc. 16 Johnson & Johnson 17 Life Technologies 18 McKesson Corp. 19 Merck & Co 20 Patterson Companies 21 Perrigo 22 Quest Diagnostics 23 St Jude Medical 24 Tenet Healthcare 25 United Health Group 26 Waters Corporation 27 Zimmer Holdings Sales $100,400 $548,800 $19,600 $29.570 $165 $4,373 $2.291,000 $25.910 $27.110 $83.740 $281,400 $1.467 $79.970 $12.370 $6.256 $38.420 $198.800 $1.237.000 $24,500 $4076 $1863.000 $4,104.000 $39 290 S77140 $40.000 $184590 $13.500 Problem 1. ABC Classification (14 points) Imagine you are the owner of a small, entrepreneurial start-up. You feel stretched to the snapping point by the demands of your various customers. Trying to keep everyone happy, you have never really prioritized your customer relationships. Apply Pareto's Law to the following dataset of your customers and provide answers to the four questions listed below. Customer Sales Abboe Laboratories SIO 100 2 Actavis Inc $5.00 3 Agent $19.00 4 Allergie 529.570 $ Amgenine $165 6 Baxter International 54,393 7 BIOGENIDEC Inc 52.291,000 Bristol-Myers Squibb $25.910 Carson 522110 10 Cene I Cavidies plc $21.400 12 Dentsply International $1,467 13 Expos Scripts 579,970 Hilcad Sciences $12.370 55 Humane 56.256 16 Jolo. 33,420 17 Life Technologies $198.00 18 McKesson Coop S1.237.000 19 Merck & Co 5242.500 20 Palemon Companies $1.076 $1,853,000 22 Ouen Daghosts $4.704,000 23St Jude Medical $39,290 24 Tenct Healthcare $73.140 25 United Reality Group 540,000 26 Water Corporation $13.90 27 Zimmer Holdings $13.500 21 Pertigo (a) Which customers are your "A." "B," and "C" customers? (5 points) Show detailed analysis for the classification. It is recommended that you conduct the ABC classification in Excel. Submit your spreadsheet as an attachment. Multiple classifications can be considered correct for this case. You are welcome to show multiple possible classifications, but only one correct classification is sufficient to gain the credit. b) Why did you decide to draw the dividing lines where you did? Describe the classification result AND explain the logic. (4 points) Under what circumstances would you consider promoting a "C" customer to a higher classification? (2.5 points) Why might you demote an "A" customer to a lower classification? (2.5 points) Customer 1 Abbott Laboratories 2 Actavis Inc 3 Agilent 4 Allergan Inc 5 Amgen Inc 6 Baxter International 7 BIOGEN IDEC Inc. 8 Bristol-Myers Squibb 9 Carefusion 10 Cerner 11 Covidien plc 12 Dentsply International 13 Express Scripts 14 Gilead Sciences 15 Humana Inc. 16 Johnson & Johnson 17 Life Technologies 18 McKesson Corp. 19 Merck & Co 20 Patterson Companies 21 Perrigo 22 Quest Diagnostics 23 St Jude Medical 24 Tenet Healthcare 25 United Health Group 26 Waters Corporation 27 Zimmer Holdings Sales $100,400 $548,800 $19,600 $29.570 $165 $4,373 $2.291,000 $25.910 $27.110 $83.740 $281,400 $1.467 $79.970 $12.370 $6.256 $38.420 $198.800 $1.237.000 $24,500 $4076 $1863.000 $4,104.000 $39 290 S77140 $40.000 $184590 $13.500