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K2 Cold Storage Case Study

The second document discusses a problem K2 Cold Storage had in March 2018 where customers were complaining about sour and smelly dairy products. It provides 35 days of temperature data from that time period and asks to test hypotheses about whether corrective action is needed or if the problem is from procurement, using z-tests and

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Yatin Sanghvi
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435 views1 page

K2 Cold Storage Case Study

The second document discusses a problem K2 Cold Storage had in March 2018 where customers were complaining about sour and smelly dairy products. It provides 35 days of temperature data from that time period and asks to test hypotheses about whether corrective action is needed or if the problem is from procurement, using z-tests and

Uploaded by

Yatin Sanghvi
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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Instructor: Rajesh Jakhotia

K2 Cold Storage Case-Study – Problem 1

K2 Cold Storage started its operations in Jan 2016. They are in the business of storing Pasteurized Fresh
Whole or Skimmed Milk, Sweet Cream, Flavored Milk Drinks. To ensure that there is no change of
texture, body appearance, separation of fats the optimal temperature to be maintained is between 20 -
40C.

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 20 - 40C during the one-year contract was above 2.5% and less than 5%
then the penalty would be 10% of AMC amount. 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 “K2_Cold_Storage_Temp_Data.csv”

1. Find mean cold storage temperature for Summer, Winter and Rainy Season
2. Find overall mean for the full year
3. Find Standard Deviation for the full year
4. Assume Normal Distribution, what is the probability of temperature having fallen below 2 0C?
5. Assume Normal Distribution, what is the probability of temperature having gone above 40C?
6. What will be the penalty for the AMC Company?

K2 Cold Storage Case-Study – Problem 2


In Mar 2018, K2 Cold Storage started getting complaints from their Clients that they have been getting
complaints from end consumers of the dairy products going sour and often smelling. On getting these
complaints, the supervisor pulls out data of last 35 days temperatures.

As a safety measure, the Supervisor has been vigilant to maintain the temperature below 3.90C

Assume 3.90C as upper acceptable temperature range and at alpha = 0.1 do you feel that there is need
for some corrective action in the Cold Storage Plant or is it that the problem is from procurement side
from where K2 Cold Storage is getting the Dairy Products.

The data of the last 35 days is in “K2_Cold_Storage_Mar2018.csv”

1. State the Hypothesis, do the calculation using z test and give your inference
2. State the Hypothesis, do the calculation using t test and give your inference

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