Burger Doodle is a fast-food restaurant that processes an average of 680 food orders each day. The
Question:
a. Compute the average product cost.
b. In order to reduce the number of wrong orders, Burger Doodle is going to invest in a computerized ordering and cash register system. The cost of the system will increase the average order cost by $0.05 and will reduce defective orders to 1%. What is the annual net cost effect of this quality-improvement initiative?
c. What other indirect effects on quality might be realized by the new computerized order system?
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Operations Management Creating Value Along the Supply Chain
ISBN: 978-0470525906
7th Edition
Authors: Roberta S. Russell, Bernard W. Taylor
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