Bloom floral offers a special arrangement for Mother's Day. Each special arrangement is sold for $50...
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Bloom floral offers a special arrangement for Mother's Day. Each special arrangement is sold for $50 each. Bloom typically receives 1,000 orders for Mother's Day. 30% of these arrangements have to be reworked to assure customer satisfaction. Each rework costs the company $8 per arrangement. The owner believes the rework problem could be reduced if all employees went through a short training prior to each holiday. The expected cost of the training would be $100 per holiday. The expectations are this training would reduce sales by 20 arrangements but also would reduce rework to only 15% of arrangements (Use Tidy Car example from lecture as a guide to get started). a. Should Bloom implement the changes? Support your argument with your calculations Bloom floral offers a special arrangement for Mother's Day. Each special arrangement is sold for $50 each. Bloom typically receives 1,000 orders for Mother's Day. 30% of these arrangements have to be reworked to assure customer satisfaction. Each rework costs the company $8 per arrangement. The owner believes the rework problem could be reduced if all employees went through a short training prior to each holiday. The expected cost of the training would be $100 per holiday. The expectations are this training would reduce sales by 20 arrangements but also would reduce rework to only 15% of arrangements (Use Tidy Car example from lecture as a guide to get started). a. Should Bloom implement the changes? Support your argument with your calculations
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To determine whether Bloom Floral should implement the changes we need to compare the costs and ... View the full answer
Related Book For
Introduction To Materials Management
ISBN: 978-9386873248
8th edition
Authors: Arnold J. R. Tony, Gatewood Ann K., M. Clive Lloyd N. Chapman Stephen
Posted Date:
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