In problem 3, suppose performance on two of the factors that had been 95 percent falls to 90 percent. What is the impact on perfect order performance?
Problem 3
Suppose a firm, in discussions with customers, learns that customers identify eight factors that they evaluate for every order they receive from suppliers. The firm then finds that its performance is 95 percent on six of these factors and 92 percent on the other two factors. What is the firm’s probable perfect order performance?