Answered step by step
Verified Expert Solution
Question
1 Approved Answer
SendBad company works in last - mile deliveries. It aims at delivering packages around 5 pm . If ashipment is late by 1 hour, the
SendBad company works in lastmile deliveries. It aims at delivering packages around pm If ashipment is late by hour, the company compensates customers in the form of $ rebate. ATaguchi loss function in the form of ky m is used in order to deter the company frommissing the target time. If y the actual delivery time, is smaller than the target m the companyis overzealous and, although this makes customers happy, it adds an unnecessaryburdencost for the company. If y is larger than m the delivery is late and the functionmeasures a penalty for the customer dissatisfaction.On the other hand, the company estimates the cost of its delivery process as a linear functionas follows: Designing the delivery process to meet the pm time target results in a cost of $ perdelivery. But this cost decreases linearly, and can be stated as ym where m is the targettime and y m measures the deviation from the target time.The two functions put together yield a total cost of: TC ky mym Determine the value of k whereby you measure the deviation in y m in hours What cost does the company incur per delivery if it sticks to its target pm ie it isneither ahead nor late What is the cost in the function TC above if the company delivered packages at pmie one hour ahead of its original target What is an ideal deviation from the original target pm that the company shouldconsider What is the total cost, if the company performed with this ideal deviation that youcomputed in Question
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started