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%.