Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Measure maps Infinity Snap Inc. has a balanced scorecard with a strategy map that shows that delivery time and the number of erroneous shipments are

Measure maps
Infinity Snap Inc. has a balanced scorecard with a strategy map that shows that delivery time and the number of erroneous shipments are expected to affect the companys ability to satisfy the customer. Further, the strategy map for the balanced scorecard shows that the hours from ordered to delivered affects the percentage of customers who shop again, and the number of erroneous shipments affects the online customer satisfaction rating. The following information is also available:
The companys target hours from ordered to delivered is 20.
Every hour over the ordered-to-delivered target results in a 0.5 decrease in the percentage of customers who shop again.
The companys target number of erroneous shipments per year is no more than 65.
Every error over the erroneous shipments target results in a 0.5 point decrease in the online customer satisfaction rating and an added future financial loss of $600.
The company estimates that for every 1% decrease in the percentage of customers who shop again, future profit decreases by $5,000 and market share decreases by 0.3%.
The company also estimates that for every 1 point decrease in the overall online customer satisfaction rating (on a scale of 1 to 10), future profit decreases by $4,000 and market share decreases by 0.6%.
Using these estimates, determine how much future profit and future market share will change if:
Average hours from ordered to shipped is 25.5.
Average shipping time (hours from shipped to delivered) is 15.3.
Number of erroneous shipments is 100.
Total decrease in future profit fill in the blank 1 of 1$
Round your answer to two decimal places.
Total decrease in future market share fill in the blank 1 of 1

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Corporate Risk Management

Authors: Faisal F. Al-Thani, Tony Merna

2nd Edition

0470518332, 978-0470518335

More Books

Students also viewed these Accounting questions