Page 348 - Onboarding May 2017

Confidential and Privileged
For the Audit and Finance Committee's Review
Work-paper #1:
Apple Market Basket vs. Modified Producer Price Index:
2016 Performance for All Categories
Apple Market Basket MPPI Advantage Driver
Category 2015 Spend 2016 Spend % Spend 2016 fav/(unfav) 2016 Indexed Spend fav/(unfav) fav/(unfav)
[1] [2] [3] [4] [5] [6] [7] [8]
Beef $191,624,542 $179,471,814 20.8% 6.3% $188,345,413 1.7% 39.2%
Poultry $202,572,649 $196,716,649 22.8% 2.9% $196,861,691 2.8% 0.6%
Seafood $93,655,877 $80,754,162 9.4% 13.8% $95,119,007 -1.6% 63.5%
Dressings Sauces & Soups $76,806,131 $76,633,207 8.9% 0.2% $76,298,356 0.7% -1.5%
Grocery $78,176,138 $78,114,795 9.1% 0.1% $78,573,258 -0.5% 2.0%
Dairy $65,032,376 $61,461,630 7.1% 5.5% $64,177,106 1.3% 12.0%
Pork $64,685,259 $66,611,016 7.7% -3.0% $64,402,672 0.4% -9.8%
Bakery $39,875,793 $38,383,026 4.5% 3.7% $39,808,905 0.2% 6.3%
Produce $48,271,841 $48,072,188 5.6% 0.4% $43,831,349 9.2% -18.8%
Paper & Packaging $22,074,657 $20,892,216 2.4% 5.4% $21,812,337 1.2% 4.1%
Oils $11,803,192 $11,232,342 1.3% 4.8% $11,759,479 0.4% 2.3%
Chemicals $4,014,574 $4,121,876 0.5% -2.7% $4,085,981 -1.8% -0.2%
Overall Performance $898,593,029 $862,464,922 100% 4.0% $885,075,554 1.5% 100%
Apple Market Basket's Target 3.3% [A]
Actual vs. Target 0.7% [B]
Sources & Notes:
[1]: Category is based on Apple Price Index.
[2] & [3] & [6]: See detailed workpapers for categories.
[4]: 2016 Category spend / 2016 All categories spend.
[5]: -{[3]-[2]}/[2].
[7]: -{[5]-[2]}/[2].
[8]: If Apple Market Basket outperforms MPPI, (Difference between each category's 2016 spend and 2016 index spend/Difference between all categories' 2016 spend and 2016 index spend).
[8]: If Apple Market Basket underperforms MPPI, -(Difference between each category's 2016 spend and 2016 index spend/Difference between all categories' 2016 spend and 2016 index spend).
[A]: Target was approved by Apple Co-op Board: Apple Market Basket would outperform MPPI by 1.82%.
[B]: Actual - Target.