Research_Process

Research Process (G4) Sarah Martin, Elizabeth Spruill, Vickie Furman, Melissa Laporte, Samantha Kaser RES 341 September 1, 2010 Stephen Loro Research Process (G4) Background: Thunder Cats Chocolates manufactures and sells chocolate. The manufacturing industry demands consistency. In the business of manufacturing chocolate, consistency and standardization is key, especially in packaging. Deviations in measuring may lead to loss of product and profit. Thunder Cats Chocolates packages 500 gram (one pound) chocolate bars and sells them at $2 per bar. They want to modify their packaging and sells to include a variety of weights that will increase their current sales as well as increase profits. Thunder Cats Chocolates plans to have their research department research and come up with different weights that could be sold to increase profits. Research Problem: The research problem facing Thunder Cats Chocolates is that they only offer one size of chocolate bars although other companies offer a variety of sizes. Research Question: What variety weights of chocolate bars can Thunder Cats Chocolates package and sell to increase profits and not affect clientele' Data Collection: The company researchers gathered data on grams of chocolate purchased per bar. The researchers then used Z-scores to determine what weights should be packaged and sold. The average mean used was 500 grams with a standard deviation of 50 grams. Below is the table of grams packaged by what percentage of customers. Grams Packaged | | % of customers | From | To | | | 346 | 425 | | 6.58% 7% | 426 | 500 | | 43.06% 43% | 501 | 575 | | 42.52% 43% | 346< | >575 | | 7.84% 7% | Recommendations: Based on the Z-score test results, Thunder Cats Chocolates Researchers are recommending that they manufacture and sell according to the scale below. They further recommend management to monitor over the next six months to see if there is any raise in sales and profits. After the six months is over, management will study the data and determine if there is a need for any more research or adjustments. Grams Packaged | | Price per Bar | From | To | | | 346< | | $0.50 | 346 | 425 | | $1.00 | 426 | 575 | | $2.00 | >575 | | $6.00 | Observations: If Thunder Cats Chocolates decides to apply this production and price range, 86% of the customers who purchase chocolate bars between 426 grams and 575 grams will have no effect on the amount they spend. The seven percent of customers who wish to buy chocolate bars that weigh less than 346 grams will cause the company to lose $1.50 per bar as well as the customers who wish to purchase chocolate bars weighing between 346 and 425 grams will cause the company to lose $1.00 per bar. However, the customers who wish to purchase chocolate bars greater than 574 grams will cause the company to gain $4.00 per bar. Over all, Thunder Cats Chocolates will have a $1.50 per chocolate bar profits for 14% of the customers. Statistical Test formulas: 1. P( 346≤X≤425) Z=X-XS=346-50050=-15450=-3.08 A1=.4990 Z=X-XS=425-50050=-7550=-1.5 A2=.4332 A1-A2=.4990-.4332=.0658 P=6.58 7% 2. P( 426≤X≤500) Z=X-XS=426-50050=-7450=-1.48 A=.4306 P=43.06 43% 3. P( 501≤X≤575) Z=X-XS=501-50050=150=.02 A2=.0080 Z=X-XS=575-50050=7550=1.5 A1=.4332 A1-A2=.4332-.0080=.4252 P=42.52 43% 4. P 346575 100-6.58+43.06+42.52=100-92.16=7.84% P 100-7+43+43 100-93 7% Conclusions: Thunder Cats Chocolates want to increase their business, sells, and profits. The problem facing Thunder Cats Chocolates is that they only offer one size of chocolate bar while other candy companies offer a variety of sizes. The research question used is; what variety weights of chocolate bars can Thunder Cats Chocolates package and sell to increase profits and not affect clientele' The research team used the Z-score method of calculating the deviations between weights of chocolate bars. Recommendations: Thunder Cats Chocolates Researchers are recommending that they manufacture and sell chocolate bars in the weight increments of 576 grams each. The bars will sell for $.50, $1.00, $2.00, and $6.00 respectively. The new weights of the chocolate and prices will amount to an increase of $1.50 per bar. This will affect 14% of people who originally bought the chocolate bars that weighed 500 grams and sold for $2.00. Thunder Cats Research Team recommends monitoring through management and a follow- up study in six months to check for an increase in sales and profits. References Steven Loro, University of Phoenix. (2010). Classroom Syllabus. Retrieved August 11, 2010, RES 341/342 from: http://classroom.phoenix.edu/afm211/secure/view-thread.jspa'threadID=24870094 Steven Loro, University of Phoenix. (2010). Classroom PowerPoint. Retrieved August 11, 2010, RES 341/342 from: http://classroom.phoenix.edu/afm211/secure/view-thread.jspa'threadID=24957195 Steven Loro, University of Phoenix. (2010). Stats Tables PDF. Retrieved August 11, 2010, RES 341/342 from: http://classroom.phoenix.edu/afm211/secure/view thread.jspa'threadID=24957195