Question
Frank Shorter, a recent PSU SCIS graduate, works for a company that distributes Big Ten licensed clothing to over 1,500 customer locations. He believes there
Frank Shorter, a recent PSU SCIS graduate, works for a company that distributes Big Ten licensed clothing to over 1,500 customer locations. He believes there is an opportunity to improve cost and service by creating a picking zone operation vs each associate traveling through the warehouse picking one order at a time. Based on his observations below are the key elements of his business case. What is the potential savings based on Frank's information (rounded to the nearest $5,000)?Total pick time per year 80,000 hoursTotal Actual Hours worked per associate/year 1700 hoursAnnual Wages per associate $45,000Fringe Benefits 35%Current productivity 60%Projected Productivity 75%Group of answer choices$910,000$1,250,000$675,000$1,690,000
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