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Performance metrics Apples & Oranges Inc. is trying to become more efficient in shipping goods. It is experimenting with two new shipping procedure initiatives aimed

Performance metrics

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:

Line Item Description Shipping Procedure A Shipping Procedure B
Number of shipping errors 126 192
Hours from ordered to shipped 14.3 17.2
Shipping time (hours from shipped to delivered) 6.7 9.5
Pounds of goods shipped 1,330,000 1,040,000
Number of shipments 350 400

a. Compute the following performance metrics for each program:

(1) Average number of shipping errors per shipment, rounded to two decimal places. Procedure A: fill in the blank 1 of 2 error per shipment Procedure B: fill in the blank 2 of 2 error per shipment

(2) Hours from ordered to delivered, rounded to one decimal place. Procedure A: fill in the blank 1 of 2 hours from ordered to delivered Procedure B: fill in the blank 2 of 2 hours from ordered to delivered

(3) Average pounds of goods per shipment. Procedure A: fill in the blank 1 of 2 lbs. of goods per shipment Procedure B: fill in the blank 2 of 2 lbs. of goods per shipment

b. Which program should the company implement moving forward? Procedure A or B?

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