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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
2000200120022003
Total Shipments 240,000321,000364,000386,000
On-time Shipments 190,000265,000322,000332,000
Complete Shipments 198,000275,000337,000354,000
Undamaged Shipments 196,000268,000312,000355,000
Correctly Billed Shipments 180,000270,000305,000326,000
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 MountainMoles logistics performance, what areas might
you concentrate on based on these results? (2 points).

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