Question

Performance metrics

Apples & Oranges Inc. is trying to become more efficient in shipping goods. It is experimenting with two new shipping procedure initiatives aimed at achieving this strategic objective. The company has provided the following data regarding the two procedures after one month of implementation:

	Shipping Procedure A		Shipping Procedure B
Number of shipping errors	64		100
Hours from ordered to shipped	15.3		17.2
Shipping time (hours from shipped to delivered)	6.7		8.5
Pounds of goods shipped	560,000		700,000
Number of shipments	200		250

a. Compute the following performance metrics for each program:

(1) Average number of shipping errors per shipment, rounded to two decimal places.

Procedure A:  error per shipment

Procedure B:  error per shipment

(2) Hours from ordered to delivered, rounded to one decimal place.

Procedure A:  hours from ordered to delivered

Procedure B:  hours from ordered to delivered

(3) Average pounds of goods per shipment.

Procedure A:  lbs. of goods per shipment

Procedure B:  lbs. of goods per shipment

b. Which program should the company implement moving forward?

Answer 1

Solution - Procedure A - 0,32 error per shipment eavor per shipment procedure B = 0.40 Calculations procedure A procedure B = = 64/200 100/250 error per shipment error per shepment procedure A a 22 hours from ordered to delevered procedure B = 25.7 hours from ordered to delivered

Calculations, procedure A procedure B 1. = = 1503 +607 17.2+8.5 hours from ordered to delivered hours from ordered to delivered

procedure A . = 2800 2800 lbs of goods per shipment lbs of goods per shipment. procedure B calculations : procedure A = 560000/200 100000/250 lbs of goods per shopment lbs of goods per shipment procedure B = b) Program B should the company Implement moving forward.