Calssic Airlines

LT Executive Management Presentation

James Biel

QRB/501

April 23, 2013

Dr Tom Woodruff

LT Executive Management Presentation

According to the Business Dictionary.com, frequency distribution is the number of times a given quantity (group of quantities) occurs in a set of data (Business dictionary). An example of frequency distribution would be listing how many times a basketball player scored 30 points if he played a total of ten games.

The purpose of this paper is to find uses of frequency distribution as they apply to inventory system. One key use of frequency distribution is that it condenses and summaries large amounts of data in a useful format, and puts it into categories where each category shows the number of observations. Additionally, frequency distribution helps in analyzing as well as estimating the frequencies in controlling and improving inventory process. For example, in a shoe store, if the frequency distribution shows that a size nine shoe of a particular brand is sold maximum, then the store would be compelled to order more size nine shoes (wkiki.answers.com).

Normal distribution can be used by forecasting method. By forecasting, it helps the business to reorder its products from the supplier before current inventory ran out. To negate future losses in sales and customers, it’s imperative for any business to never hold too much or too little inventory. Businesses that control their inventory are able to control their potential losses. Demand inventory forecasting allows businesses to predict the highs and lows of their demands, which help them properly, plan their operations efficiently for future inventory and customer demands (small business.Chron).

(www.businessdictionary.com/definition/frequency-distributio)

(http://wiki.answers.com/Q/What_are_the_advantages_of_using_a_frequency_distribution)

(charmayne smith)