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Reship Solutions, Inc. has a distribution center in Cincinnati, where it receives and breaks down bulk orders from suppliers' factories and ships out products to
Reship Solutions, Inc. has a distribution center in Cincinnati, where it receives and breaks down bulk orders from suppliers' factories and ships out products to retail customers. The different quality cost elements are shown in the table below. Classify these into the appropriate quality cost categories and compute the percentage of total quality cost for each category. Cost Element Amount Checking outbound boxes for errors $607,750 Quality planning $10,625 Downtime due to conveyor/computer $342,125 problems $68,000 Packaging waste $51,000 Incoming product inspection $34,000 Customer complaint rework $36,550 Correcting erroneous orders before shipping $25,925 Quality training of associates $17,425 Quality improvement projects $36,125 Other waste $11,475 prepare a Pareto Chart for the above case and give your recommendations
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