Answer to Test #11: Positive Sales Growth, Negative Company Volatility


Volatility and Sales GrowthAnswer to Test #11: Positive Sales Growth, Negative Company Volatility

Yellow Highlighting=Change from Beginning of Period


End of Period

Customers in Market

Amt Purch from all Suppliers

Primary Supplier

Primary Supplier % of Cust Purch Units of Sale by Primary Supp

Secondary Supplier

Secondary Supp % of Cust Purch Units of Sale by Secondary Supp
Customer A 1500 Supplier 1 40% 600 Supplier 2 60% 900
Customer B 2000 Supplier 1 80% 1600 Supplier 2 20% 400
Customer C 1000 Supplier 2 50% 500 Supplier 3 50% 500
Customer D 0 None 0% 0 None 0% 0
Total 4500 2700 1800
Suppliers in Market Amount
Sold
% Total Market Share
Supplier 1 2200 48.9%
Supplier 2 1800 40.0%
Supplier 3 500 11.1%
Total 4500 100.0%


Summary of Changes During Period

Supplier

Change in Unit Sales Volume % Volume Change from Beginning to End Net Unit Volatility in Volume Change Volatility as % of Unit Sales Volume Change

Customer Growth in Volume Change

Customer Growth as % of Unit Sales Volume Change
Supplier 1 340 18.3% -300 -88% 640 188%
Supplier 2 460 34.3% 300 65% 160 35%
Supplier 3 0 0.0% 0 0% 0 0%
Total 800 21.6% 0 0% 800 100%

Explanation: In order for this condition to hold, the supplier's customers must purchase more and at least one customer must allocate less of its purchases to the supplier. We reached our answer by having Customer B increase its purchases to 2000 and Customer A reduce its allocation percentage to Supplier 1 to 40%.