2 Proportions for Improve Back-order Rate

Use 2 Proportions to demonstrate that the proportion of backorder rate decreases after a process improvement.

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

Example

Backorder rate is the proportion of orders that cannot be filled when the customer orders them.

In this worksheet, Backorder Before and Backorder After represent the number of orders with backorder status before and after a process improvement. Total Orders Before and Total Orders After represent the total number of orders before and after the process improvement.

With summarized data, you enter the data values instead of the column identifiers.

`Backorder Before`	`Total Orders Before`	`Backorder After`	`Total Orders After`
3583	23588	1432	22172

How-to

Choose Solutions Modules > Functions > Supply Chain KPIs, then select Launch.
Under Quality, select Back-order rate.
Select Improve back-order rate, then click OK.
Select 2 Proportions, then click OK.
From the drop-down list, select Summarized data.
In Number of events, enter the number of orders with backorder status before the process improvement as Sample 1. Enter the number of orders with backorder status after the process improvement as Sample 2.
In Number of trials, enter the total number of orders before the process improvement as Sample 1. Enter the total number of orders after the process improvement as Sample 2.
Select Options. In Alternative hypothesis, select Difference > hypothesized difference. The hypothesized difference defines your null hypothesis. By default, the hypothesized difference = 0. This one-sided test has greater power to detect whether the proportion of orders with backorder status decreased after the process change.
Click OK.

Tip

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