Question

Pizzafest Inc. makes and delivers pizzas to homes and offices in the Vancouver area. Fast, on-time delivery is one of Pizzafest’s key strategies. Pizzafest provides the following information for the year 2012 about its customer response time—the amount of time between when a customer calls to place an order and when the pizza is delivered to the customer:
REQUIRED
1. For January–June 2012 and July–December 2012, calculate the percentage of pizzas delivered in each of the four time intervals (30 minutes or less, 31 to 45 minutes, 46 to 60 minutes, and 61 to 75 minutes). On the basis of these calculations, has customer-response time improved in July–December 2012 compared with January–June 2012?
2. When customers call Pizzafest, they often ask how long it will take for the pizza to be delivered to their home or office. If Pizzafest quotes a long time interval, customers will often not place the order. If Pizzafest quotes too short a time interval and the pizza is not delivered on time, customersget upset and Pizzafest will lose repeat business. Based on the January–June 2012 data, what maximum customer-response time should Pizzafest quote to its customers if (a) it wants to have an on-time delivery performance of at least 75%, and (b) it wants to have an on-time delivery performance of at least 95%?
3. If Pizzafest had quoted the maximum customer-response times you calculated in requirements 2a and 2b, would it have met its on-time delivery performance targets of 75% and 95% respectively for the period July–December 2012?


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  • CreatedJuly 31, 2015
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