Measure of Dispersion
The measure of dispersion that most accurately depicts inventory data is standard deviation. When you look at measuring dispersion you are looking to see how the entire spread of data actually measures to each other. Standard deviation presents how much the data will deviate from the normal number. Also what this will show are not just tendencies for a year’s worth of data but this can be analyzed effectively to look at certain month’s inventory numbers. If a trend is able to be developed then all that will have to be done is a minor tweak to get next year’s perdition.
It also allows for a simple calculation of a percentage above the norm. This will also show the highs and lows in a very simple form so that you can compare them with last years highs and lows. The mean most accurately depicts the inventory data that is being presented. When you look at the mean you are looking at an average and you are then able to see what a good place to start for future inventory numbers may be. This would also depict what a norm might be for your company if you look at the last 5 years and compare it to the last year.
Also if you take the median you are looking at the middle of the number set but you are not accurately depicting the high and low numbers that are within the number set and the raw data. I think that also the inventory number can be anything when you are looking at the mode it all depends on what number may have happened twice or if no repetition in the middle. Inventory management systems are a critical aspect of businesses. Monitoring inventory levels are important for generating revenue and profits.
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Inventory Management Systems are used to track and monitor inventory levels and are often tracked with modern software systems. Many organizations find it important to maintain an efficient inventory management system to help generate revenue and profit. Even though most Inventory Systems are similar, each company modifies their system to fit the needs of the company in order to be successful. Management needs to have the ability to create, read and decipher frequency distributions, locate the mean, median and mode and show a normal distribution Is this Essay helpful?
Join OPPapers to read more and access more than 350,000 just like it! get better grades of raw data collected. The University of Phoenix would also need to be able to compute this raw data into grouped data in order to report distributions and a standard deviation. The executive management team would present this data of the inventory system in order to allow for forecasting, improving customer retention, satisfaction, along with profitability and expenses.
The inventory system would gather raw data from multiple inquiries, program frequency, number of student inquiries, and how many students enrolled and into which programs and finally how many graduates there are. The following table shows the mean, median and mode of the Summer Historical Data for the actual demands in units (units being the students). The accompanying presentation provides this data that was used from the Summer Historical data series and shows raw data showing frequency distribution, forecasting for the following year, averages and most frequent numbers, the normal distribution with a symmetrical bell curve.
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