Decision Intelligence Lab

Where Human Judgment Meets Machine Intelligence

AI Global Markets

Adoption of Gen AI in organizations, globally

65

AI Power-Seeking Issues Increase (est.)

8%

Global AI investment growth (YOY %)

26%

AI achieving most of their goals in orgs.

19%

FROM FRACTIONS TO UNITS: THE INVENTORY MATH THAT PROCUREMENT TEAMS SKIP

The Business Problem

Two purchasing managers are restocking inventory for an upcoming product launch. The operations manager placed orders for 7/8 of a case of wireless earbuds and 3/4 of a case of phone chargers. The marketing manager placed a single order for 1½ cases of branded accessories. Each case holds 16 units. Which manager ordered more inventory in total, and by how many units?

  • a) The marketing manager, 10 units
  • b) The operations manager, 2 units
  • c) The operations manager, 10 units

Can you figure it out by reading the following program?

from fractions import Fraction

def compare_inventory_orders(order1, order2, mixed_order, units_per_case):
    ops_total = order1 + order2
    ops_units = ops_total * units_per_case
    mkt_units = mixed_order * units_per_case
    return int(ops_units), int(mkt_units)

print("=== Inventory Order Comparison ===")
print("Enter the operations manager's two fractional case orders.")
num1 = int(input("  Order 1 — numerator: "))
den1 = int(input("  Order 1 — denominator: "))
num2 = int(input("  Order 2 — numerator: "))
den2 = int(input("  Order 2 — denominator: "))
print("Enter the marketing manager's order as a mixed number.")
whole = int(input("  Whole part: "))
num3 = int(input("  Fraction — numerator: "))
den3 = int(input("  Fraction — denominator: "))
units_per_case = int(input("Units per case: "))

order1 = Fraction(num1, den1)
order2 = Fraction(num2, den2)
mixed_order = whole + Fraction(num3, den3)

ops, mkt = compare_inventory_orders(order1, order2, mixed_order, units_per_case)
diff = abs(ops - mkt)
winner = "Operations manager" if ops > mkt else "Marketing manager"
print(f"\nOperations manager total: {ops} units")
print(f"Marketing manager total:  {mkt} units")
print(f"Winner: {winner} ordered more — difference: {diff} units")
Solve it!

Decision Intelligence Lab is a blog authored by C. L. Palacios

I am a market researcher who can use data science and AI to change business decisions. My differential is my scientific background. My experience has been developed with IDC (International Data Corporation), Lexia Insights (Mexico) and Hexis (Colombia) in projects for technology, FMCG, retail, hygiene, beauty, food, household appliances,technology, and health brands. Contact me on LinkedIn.

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