Project 1 -
Cold Storage
ProblemAssessment: Project 1- Cold Storage
Problem
Problem 1:
Cold Storage started its operations in Jan
2016. They are in the business of storing
Pasteurized Fresh Whole or Skimmed Milk,
...
Project 1 -
Cold Storage
ProblemAssessment: Project 1- Cold Storage
Problem
Problem 1:
Cold Storage started its operations in Jan
2016. They are in the business of storing
Pasteurized Fresh Whole or Skimmed Milk,
Sweet Cream, Flavoured Milk Drinks. To
ensure that there is no change of texture,
body appearance, separation of fats the
optimal temperature to be maintained is
between 2 – 4 C.
In the first year of business they
outsourced the plant maintenance work to
a professional company with stiff penalty
clauses. It was agreed that if the it was
statistically proven that probability of
temperature going outside the 2 - 4 C
during the one-year contract was above
2.5% and less than 5% then the penalty
would be 10% of AMC (annual
maintenance case). In case it exceeded 5%
then the penalty would be 25% of the
AMC fee. The average temperature data at
date level is given in the file
“Cold_Storage_Temp_Data.csv”
Solution
Arithmetic Mean (called mean) is defined as the sum of all observations in a data set
divided by the total number of observations.
Season is qualitative variable it has three seasons namely Summer, Winter and
Rainy.These are also factors / categorical data in R. Season is also a character in a vector
in R. Furthermore, temperature is a numerical value together with the date and is also
integers.
1
Project 1 -
Cold Storage
Problem
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