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Question 1 Measure Maps Silver Lining Inc. has a balanced scorecard with a strategy map that shows that delivery time and the number of erroneous

Question 1

Measure Maps

Silver Lining 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 company's 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 company's target hours from ordered to delivered is 30.
  • Every hour over the ordered-to-delivered target results in a 0.5% decrease in the percentage of customers who shop again.
  • The company's target number of erroneous shipments per year is no more than 70.
  • Every error over the erroneous shipments target results in a 0.05 point decrease in the online customer satisfaction rating and an added future financial loss of $800.
  • The company estimates that for every 1% decrease in the percentage of customers who shop again, future profit decreases by $4,000 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 $3,000 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 26.5.
  • Average shipping time (hours from shipped to delivered) is 14.3.
  • Number of erroneous shipments is 100.

Total decrease in future profit $fill in the blank 1

Round your answer to two decimal places.

Total decrease in future market share fill in the blank 2%

Question 2

Measure maps

Moses Moonrocks Inc. has developed a balanced scorecard with a measure map that suggests that the number of erroneous shipments has a direct effect on operating profit. The company estimates that every shipment error leads to a reduction of revenue by $4,050 and increased costs of about $2,700.

Sales$222,000
Cost of goods sold156,000
Depreciation expense19,000
Other expenses20,000

If the company has the above budgeted sales and costs for next month (without accounting for any possible shipping errors), determine how many shipping errors the company can afford to have and still break even.

Break-even shipping errors fill in the blank 1

Question 3

Cognitive biases

Two departments within Cougar Gear Inc. are Production and Sales. Each department has a unique scorecard, as follows:

image text in transcribedimage text in transcribedimage text in transcribed
Production Sales Learning and Internal Learning and Customer Growth Processes Growth Improve Reduce Train Retain Train Retain Please the production production employees employees employees employees customer times shutdowns Median Median Percentage Online. Average Production : Number of. training Average training Common Metrics of customers customer. employee time per . : production hours per hours per employee who shop satisfaction tenure unit :shutdowns tenure employee employee again : rating 80 hrs. 2.0 yrs. 2 hrs. 3 per mo. Unique Metrics 120 hrs. 3.0 yrs. 50% 9.0 81 hrs. 2.1 yrs. 2.5 hrs. 4 per mo. 118 hrs. 2.9 yrs. 62% 9.8Learning and Growth Internal Processes Customer Financial Improve Retain top Improve Reduce Retain new Increase talent delivery employees rework customers profits acquisition accuracy Recruit at Automate top 10 colleges warehouse % of entry- Number level hires Tenure of Number of Percentage Customer of units of customers referral Market Gross profit from top 10 top decile erroneous who shop colleges frequency share employees deliveries reworked again 60% 2.3 yrs. 7 per wk. 3 per wk. 12% 3% 17.2% $86 millionLearning and Financial Growth Internal Processes Customer Reduce Improve Reduce Increase Train returns shipping Delight the employee market employees customer turnover processing errors share Tie pay to Increase training annual hurdles bonus Median Percentage Online training Average Hours from Number of of customers customer Market employee returned erroneous hours per to refunded shipments who shop satisfaction share tenure employee again rating 90 hrs. 2.5 yrs 10 hrs. 3 per wk. 55% 9.6 3.56%

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