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Orion Bus Industries Contract Bidding Strategy Case Solution
The historical data of cost, quantity and features (35’, 40’, HF, Diesel) can be used to increase the increase the margins of the company by choosing a bid price which is optimum.
Case Analysis for Orion Bus Industries Contract Bidding Strategy
The regression analysis is used to come up with the bid price of 14 high-floor, 40' diesel powered buses at a manufacturing cost of $265,500 per bus. The Y- variable or the output of regression equation is the bid price. This is also called the dependent variable. There are multiple X-variables or the independent variables. The independent variables include cost, quantity, if 40', if 35', if the high floor and if diesel. These variables are used in the regression analysis which gives the regression equation as:
Bid Price = 20475.95 + Orion Cost Per bus x 1.047 + Quantity x -523.278+If 40' x 14148.8 + if 35' x 15430.09 + If diesel x -3963.75
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