A third-party logistics (3PL) service provider receives an average of 2,600 orders per day at its warehouse

This company takes great effort in setting and adhering to its warehouse KPI of In-Full delivery rate at 97%.

(a) Why do you think it matters to this 3PL service provider to operate with an InFull rate of 97%? What would happen if the service provider is unable to achieve this KPI target? (8 marks)

(b) In addition, the company plans to set its warehouse KPI target of On-Time InFull (OTIF) rate to 95%. Calculate the expected number of orders to be delivered as per customers' request based on this target OTIF rate. (8 marks)

(c) Each week, the company's warehouse engages 3 workers to pick their weekly orders. Assume each worker works a total of 40 hours each week. Assume 6 working days per week. Determine whether the current operations is meeting the company's target KPI of 160 orders picked per hour. What should the company do if it does not achieve this target? State any assumptions in arriving at your solution. (9 marks)