Question: Managers of 1200 different retail outlets make twice a month restocking orders

Managers of 1200 different retail outlets make twice-a-month restocking orders from a central warehouse. Past experience shows that 4% of the orders result in one or more errors such as wrong item shipped, wrong quantity shipped, and item requested but not shipped. Random samples of 200 orders are selected monthly and checked for accuracy.
a. Construct a control chart for this situation.
b. Six months of data show the following numbers of orders with one or more errors: 10, 15, 6, 13, 8, and 17. Plot the data on the control chart. What does your plot indicate about the order process?

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  • CreatedSeptember 20, 2015
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