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MountainMole Foods has decided to use the perfect order measurement approach to track its logistics performance. According to MountainMole, a perfect order is one that
MountainMole Foods has decided to use the perfect order measurement approach to track its logistics performance. According to MountainMole, a perfect order is one that (1) is delivered on time, (2) arrives in one complete shipment, (3) arrives undamaged, (4) is correctly billed. MountainMole has the following performance figures for the past four years: (Assume that there is at most one error per order.) Year 2000 2001 2002 2003 Total Shipments 240,000 321,000 364,000 386,000 On-time Shipments 190,000 265,000 322,000 332,000 Complete Shipments 198,000 275,000 337,000 354,000 Undamaged Shipments 206,000 280,000 322,000 364,000 Correctly Billed Shipments 180,000 270,000 305,000 326,000 a) Calculate performance for each of the four years. What is the overall trend in the performance, if any? What factors explain the results? (6 points) b) If you were looking to improve MountainMole's logistics performance, what areas might you concentrate on based on these results? (2 points).MountainMole Foods has decided to use the perfect order measurement approach to track its logistics performance. According to MountainMole, a perfect order is one that (1) is delivered on time, (2) arrives in one complete shipment, (3) arrives undamaged, (4) is correctly billed. MountainMole has the following performance figures for the past four years: (Assume that there is at most one error per order.) Year 2000 2001 2002 2003 Total Shipments 240,000 321,000 364,000 386,000 On-time Shipments 190,000 265,000 322,000 332,000 Complete Shipments 198,000 275,000 337,000 354,000 Undamaged Shipments 206,000 280,000 322,000 364,000 Correctly Billed Shipments 180,000 270,000 305,000 326,000 a) Calculate performance for each of the four years. What is the overall trend in the performance, if any? What factors explain the results? (6 points) b) If you were looking to improve MountainMole's logistics performance, what areas might you concentrate on based on these results? (2 points)
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