A retail company has a large supply chain. Many steps are required to get items to the shelves of the retail stores. One of the last steps is a delivery of items from the companys distribution centers to the stores. On-time deliveries are critical to the stores ability to maintain its inventory and generate good results for the business. The retail company contracts with a trucking company (A) for these deliveries. The retail company can track each truck to see if its delivery was on time or not. Historically, company A has performed reasonably well in terms of delivering these shipments on time. However, the retail company recently received a bid from an alternative trucking company (B). This new competitor offers similar prices but promises improved on-time delivery performance. The retail company is considering whether to switch from company A to company B for its deliveries from the distribution centers to the stores.
You will be providing support to the retail companys manager in charge of logistics. The retail company would like to run a test of the new trucking company. They are willing to devote 100 trips by truck from a distribution center to a store for the test. For each of the 100 trips, you can choose which trucking company will perform the delivery.
1.Answer the following question in 4 sentences that explain your reasoning. How would you design a study to investigate the research question?
2. Without any statistical analysis, what would you consider a sizable drop in the proportion of on-time deliveries? Select a minimal effect size that would be persuasive for the company. Justify your reasoning in 2 sentences.
3.How would you convince the logistics manager to undertake this research study? Write a persuasive argument (4 sentences) in favor of adopting this approach.
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