DEPARTMENT OF MANAGEMENT STUDIES & INDUSTRIAL

ENGINEERING
IIT (ISM) DHANBAD
BUSINESS ANALYTICS LAB: MSC 508
EXERCISE: 1

Q1. How can WE efficiently determine each of my employee’s weekly

wages? Shown in table, you are given the hours worked this week
and hourly salary for several employees. You want to determine the
amount paid to each employee, as well as total hours worked and
average hourly wage.
Table 1
Wage Per
Employee Hours Hour Weekly Salary
$ $
Luka Abreus 49 10.00 490.00
$ $
Terry Adams 36 13.00 468.00
$ $
David Ahs 43 14.00 602.00
$ $
Kim Akers 35 10.00 350.00
$ $
Ties Arts 38 9.00 342.00
$ $
Kamal Amirah 38 14.00 532.00
$ $
Amy Albert’s 42 11.00 462.00
$ $
Matt Berg 39 9.00 351.00

Q2.How can we efficiently determine how much a bakery owes each

supplier? You are given the price per pound that a bakery paid each
of six suppliers for sugar, butter, and flour. Determine the amount
paid to each supplier for sugar, flour, and butter, as shown in table.
Also, determine the total amount paid.
Table2
Prices
Sugar Butter Flour
$ $ $
Supplier 1 0.32 1.57 0.11
$ $ $
Supplier 2 0.35 1.54 0.10
$ $ $
Supplier 3 0.25 1.54 0.21
$ $ $
Supplier 4 0.29 1.24 0.10
$ $ $
Supplier 5 0.35 1.30 0.18
$ $ $
Supplier 6 0.27 1.42 0.15

Quantity

Sugar Butter Flour

Supplier 1 364 391 220
Supplier 2 387 245 314
Supplier 3 290 211 200
Supplier 4 340 265 330
Supplier 5 261 345 246
Supplier 6 365 232 390

Q3. How can we predict the number of customers a new health club
will have in 10 years. Worksheet models have inputs or assumptions
that we use to calculate desired outputs. In a basic customer
estimation input model, we need three inputs:
1. The number of customers at the beginning of Year 1.
2. Churn rate: the fraction of starting customers (excluding new
Customers) who quit each year.
3. The number of new customers obtained each year.
Start 100
New per 20
year
Churn rate 0.15

Q4. How can local coffee shop determine how changes in price and
unit cost affect profit? A demand curve shows how changes in price
change product demand. Let’s assume daily demand for cups of
coffee is given by 100-15*Price in dollars. We assume the unit cost of
a cup of coffee varies between $0.50 and $2.00 and the price of a
cup of coffee varies between $2.00 and $5.00. Determine profit for
each price/unit-cost combination?