LEE Electronics
Executive Summary
Objectives & Results
?· The Purpose of this project was to establish a foundation by which Leading Edge Electronics can evaluate the overall profitability for each account number and model number.
?· Results show that approximately 3% of the total accounts represent over 75% of the total profit margin. It was also found that less then 6% of the total models accounted for over 95% of the total profit margin.
Supporting Reasoning & Methodology
?· The original data was cleaned (Exhibit 1) to provide more accurate data for analysis.
?· The data was organized into the seven different business classes of products and further analyzed based on volume, revenues and profits (Exhibit 2). Upon further inspection, it was concluded that CEG, with 49% of total revenues and 34% of profits, would be the most appropriate business class to develop the framework for future analysis.
?· The CEG data was isolated and segmented, based on profit margins, into ABC classes for both account numbers and model numbers. The ?A? class consisted of customers and models that accounted for 75% of total profits in their respective classes. The ?B? class consisted of the next 20% of total profits while the ?C?
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