1. Each day, a FedEx competitor processes approximately 50,000 shipments. Suppose that they use the Service Quality Index with weights provided in the table below and identified the following numbers of errors during a five-day week. These values are hypothetical and do not reflect any real companys actual performance.

Description	Weight	Number of Errors
Complaints reopen	3	100
Damaged pkgs	10	15
International	1	106
Invoice adjustments	1	282
Late pickup stops	3	209
Lost packages	10	5
Missed proof of delivery	1	26
Right date late	1	751
Traces	3	114
Wrong day late	5	12

Compute the Service Quality Indicator by finding the weighted sum of errors as a percentage of total shipments. Do not round intermediate calculations. Round your answer to three decimal places.

Service Quality Indicator (SQI):

2. A major airline is attempting to evaluate the effect of recent changes it has made in scheduling flights between New York City and Los Angeles. Data available are as follows:

Number of	Number of
	Flights	Passengers
Month prior to schedule change	17	8,527
Month after schedule change	30	15,570

Calcuate the number of passengers per flight. Round your answers to the nearest whole number.

Number of passengers, month prior to schedule change: _____

Number of passengers, month after schedule change: ____

Using passengers per flight as a productivity indicator, comment on the apparent effect of the schedule change. Use the rounded numbers of passengers obtained above for your calculations. Round your answer for productivity indicator to one decimal place.

Productivity -Select increased OR decreased 3 by_____ percent after the schedule change. This could be due to -Select more OR less 5 convenient flight times, -Select-better OR worse schedules or some other intervening variable.

3. A hamburger factory produces 65,000 hamburgers each week. The equipment used costs $12,000 and will remain productive for three years. The labor cost per year is $12,500.

1. What is the productivity measure of "units of output per dollar of input" averaged over the three-year period? Assume that there are 52 weeks per year. Round your answer to one decimal place.

   Productivity: ______ hamburgers/dollar

2. The company has the option of purchasing equipment for $14,000, with an operating life of four years. It would reduce labor costs to $9,500 per year. Should it consider purchasing this equipment (using productivity arguments alone)? Assume that there are 52 weeks per year. Round your answer for productivity to one decimal place.

   For the expensive machine, productivity is hamburgers/dollar input. Because the productivity of the expensive machine is -Select higher OR lower, it would be a -Select good OR bad investment based on this single criterion.

4. A fast-food restaurant has a drive-through window and during peak lunch times can handle a maximum of 80 cars per hour with one person taking orders, assembling them, and acting as cashier. The average sale per order is $5.00. A proposal has been made to add two workers and divide the tasks among the three. One will take orders, the second will assemble them, and the third will act as cashier. With this system it is estimated that 100 cars per hour can be serviced. Assume that prevailing minimum wage is $8.55. Use productivity arguments to recommend whether or not to change the current system. Round your answers to two decimal places.

Productivity for system 1: _____

Productivity for system 2: _____

With the additional two workers, productivity -Select-increases OR decreases. Thus, it is -Select-advisable OR not advisable to change the current system.