SUPPLY CHAIN ANALYTICS

MADHU M N
20222MLS0073 9. A company has various requirements materials to manufacture components.
sec 17 The demand for the component is dependent on material price of two different raw materials the
Exercise: -08
dependencies indicated below
Date: - 14/02/2024
(i) Y depend on X1(L)
(ⅱ) Y depend on X2(Q)
write down the normal Equations for the above the Equations
SOLUTION: -
linear model
(i) Y=a+bx1
Quadratic model (non linear)
(ii) Y = c + dx2+ex22
Combined model
Y = a + bx1 + c+ dx₂ + ex22
Normal Equation: -
Y = (a+c) + bx1 + dx₂ + ex22
let k =a+c ∑Y = na + b∑x1 + c∑x2 + d∑x²2

Y = k + bx1 + dx₂+ex22 ∑yx = a∑x1 + b∑x2 + c∑x2x2 + dx1x22

General form: - Σyx2 = a∑x2 + b∑x1x2 + c∑x22 + d∑x23
Y=A+Bx1+Cx22 Σyx12 = a∑x12+ b∑x13+ c∑x12x2 + d∑x12x22