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Apples & Oranges Inc. is trying to become more efficient in shipping goods. It is experimenting with two new shipping procedure initiatives aimed at
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: Number of shipping errors Hours from ordered to shipped Shipping time (hours from shipped to delivered) Pounds of goods shipped Number of shipments Shipping Procedure A Shipping Procedure B 72 120 17.3 20.2 7.7 6.5 720,000 500,000 200 250 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 Procedure B: lbs. of goods per shipment lbs. of goods per shipment b. Which program should the company implement moving forward?
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