Business Metrics for Data-Driven Companies, Week (1-4) All Quiz Answers With Assignments.

Business Metrics for Data-Driven Companies

Week 4 Assignments:

Question 1: Identify a business metric based on the case study.

Days Inventory

Question 2: For the identified metric, state whether it is a revenue, profitability or risk metric.

Profitability Metric

Question 3: Identify the metric as traditional or dynamic. Explain why you classified the metric as you did.

Days inventory is a dynamic metric. This is because the amount of time a product is stored between delivery and 
selling can be adjusted and changed in the span of less than a month.

Question 4: Which of the data available in the case study would be used to derive the metric you have chosen?

To derive days inventory, we can use the time of purchase and item purchased data from the register. 
We also use the delivery data which includes the amount of each ingredient delivered each week.
So the data we use includes:
- 4 years of cash register data for every store that has, for each transaction, the date and time of the purchase,
 the specific items purchased, and the sales price of each item purchased.
- 4 years of delivery data that lists how much of each kind of yogurt mix, flavoring, and topping was delivered to 
each store each week.

Question 5: Propose a type of relevant business process change that would be supported by the metric you have chosen. Explain why and how your chosen metric relates to your recommended business process change.

A recommended business process change would be to use inventory management in order to optimize days inventory. 
This would benefit the store as days inventory would be minimized while there is minimal risk of having zero inventory 
that could be sold. The days inventory metric shows how long the yogurt ingredients are sitting on the shelf while not
 being sold. Minimizing this metric would reduce the amount of inventory being thrown out, thus increasing profitability.

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