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Use the dataset on this document, which contains data on 50 products by vendor to someone like Wal-Mart. The data includes volume for each product over the past year, with markup and returns. Profit is: Volume*(1-Returns)*(Markup-1) - 10000 Fixed Cost Using the idea of Pareto to set risk matrix category limits, find the cutoffs for the worst 10% and the next worse 30% for the dimensions of profit and claims (measured in the dollar value of returns), and classify the 50 products on this matrix. Assume the following policies: If claims in the worst 10% and profit in the worst 40%, terminate the contract (red). If claims in the worst 10% and profit in the best 60%, renegotiate terms (amber). If claims in the intermediate range and profit in the worst 40%, renegotiate terms (amber). Otherwise continue current contract (green). Report the categorization for each of the 50 products. Also, report expected foregone profit of cancelled contracts, as well as expected reduction in dollar value of returns. Vendor Volume Markup ReturnRate Net A001 390461 1.002 0.076 A002 784671 1.108 0.009 A003 49382 1.182 0.002 A004 24147 1.166 0.036 A005 790194 1.001 0.087 A006 592982 1.101 0.046 A007 837494 1.174 0.021 A008 69058 1.002 0.058 A009 534267 1.294 0.094 A010 440624 1.140 0.049 B011 850945 1.145 0.072 B012 935664 1.174 0.057 B013 619919 1.027 0.098 B014 454366 1.196 0.092 B015 990602 1.103 0.020 B016 828751 1.269 0.044 B017 319312 1.202 0.034 B018 980512 1.174 0.014 B019 21331 1.159 0.009 B020 203700 1.235 0.050 C021 193643 1.297 0.007 C022 580117 1.136 0.087 C023 475187 1.078 0.014 C024 937411 1.013 0.020 C025 297846 1.113 0.021 D026 181311 1.085 0.065 D027 698827 1.291 0.057 D028 104699 1.008 0.089 D029 388224 1.198 0.067 D030 746914 1.260 0.044 E031 849184 1.018 0.075 E032 495978 1.161 0.061 E033 58805 1.102 0.002 E034 444055 1.094 0.027 E035 587522 1.247 0.044 F036 490716 1.045 0.021 F037 653028 1.099 0.067 F038 955059 1.235 0.099 F039 640514 1.244 0.052 F040 804459 1.267 0.042 H041 43777 1.244 0.086 H042 144964 1.099 0.043 H043 97626 1.244 0.021 H044 535154 1.128 0.076 H045 520490 1.029 0.020 J046 155805 1.219 0.022 J047 802105 1.135 0.084 J048 583267 1.084 0.043 J049 121436 1.117 0.041 J050 666615 1.113 0.049

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