Fit Regression Model for Predict Total Supply Chain Management Cost As A Proportion Of Sales

Use Fit Regression Model to use multiple predictors to predict total supply chain management cost as a proportion of sales.

This example applies to the Supply Chain Module. For more information, go to www.minitab.com/supply-chain-module.

Example

Total supply chain management cost as a proportion of sales is the total supply chain costs for a specific time period divided by the total sales.

In this worksheet, Total Cost Proportion is the response. Number of Obsolete Items is a continuous predictor, and Auto Purchase Order is a categorical predictor. The predictors may explain differences in cost proportions.

C1	C2	C3-T
`Total Cost Proportion`	`Number of Obsolete Items`	`Auto Purchase Order`
0.154	1500	No
0.143	675	Yes
0.167	2075	No
0.139	438	No

How-to

Choose Solutions Modules > Functions > Supply Chain KPIs, then select Launch.
Under Costs, select Cost as a proportion of sales.
Select Predict total supply chain management cost as a proportion of sales, then click OK.
Select Fit Regression Model, then click OK.
In Responses, enter the column that contains the proportions data. The response is also called the Y variable.
In Continuous predictors, enter the columns of numeric data that may explain or predict changes in the cost as a proportion of sales. The predictors are also called X variables.
In Categorical predictors, enter the categorical classifications or group assignments that may explain or predict changes in the cost as a proportion of sales. The predictors are also called X variables.
Click OK.

Tip

For more information about this analysis, click Help in the main dialog box.