Reship Solutions, Inc. has a distribution center in Cincinnati where it receives and breaks down bulk orders
Question:
Reship Solutions, Inc. has a distribution center in Cincinnati where it receives and breaks down bulk orders from suppliers’ factories and ships out products to retail customers. The different quality cost elements are shown in the table below. Classify these into the appropriate quality cost categories and compute the percentage of total quality cost for each category.
Transcribed Image Text:
Cost Element Checking outbound boxes for errors Quality planning Downtime due to conveyor/computer problems Packaging waste Incoming product inspection Customer complaint rework Correcting erroneous orders before shipping Quality training of associates Quality improvement projects Other waste Correction of typographical errors-pick tickets Amount $607,750 $10,625 $342,125 $68,000 $51,000 $34,000 $36,550 $25,925 $17,425 $36,125 $11,475
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Related Book For
Operations And Supply Chain Management
ISBN: 9780357131695
2nd Edition
Authors: David A. Collier, James R. Evans
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