Question: [15 points ] AggTech starts a new project to understand the relationship between the sales and customer service level better. Considering the importance of delivery

[15 points ] AggTech starts a new project to

[15 points ] AggTech starts a new project to understand the relationship between the sales and customer service level better. Considering the importance of delivery time, they decide to use the order cycle time to measure the customer service level. More specifically, they are measuring the percentage of orders that can be delivered within 8 days. Using the twopoint method, they make the following observations: - When 84% of the orders are delivered within 8 days, monthly sales are observed to be 12,000 units. - When only 6% of orders take longer than 8 days, monthly dales are observed to be 14,500 units. i. (5) What is the estimated change in monthly sales for 1% change in service level? ii. (5) What are the estimated monthly sales if AggTech delivers 90% of the orders within 8 days? iii. (5) What are the estimated monthly sales if AggTech does not 20% of the orders within 8 days

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related General Management Questions!

1. [15 points] AggTech starts a new project to understand the relationship between the sales and customer service level better. Considering the importance of delivery time, they decide to use the...

Question: Identify & analyze problems Ashok Leyland faced in the case study. Please refer to the Case Study on Ashok-Leyland Introduction In 1997-98, AL, recorded a profit-after-tax (PAT) of Rs. 18.4...

Revamping the Supply Chain: The Ashok Leyland Way: Please refer to the Case Study on Ashok-Leyland Introduction In 1997-98, AL, recorded a profit-after-tax (PAT) of Rs. 18.4 crore1 on sales of Rs....

QUESTION 1 Domino's says AI (Artificial Intelligence) has improved pizza quality AI has contributed more than 13 million pizzas over the past two years Pizza retailer Domino's claims a piece of...

CASE STUDY HOME DEPOT CASE This case has been produced for assessment purposes only. It has been sourced directly from the articles indicated within the bibliography, which are available in the...

The purpose of this assignment is to be able to critique a research article including critically examining its strengths and weaknesses, internal and external validity, and where appropriate,...

Please help with the assignment for the following attachment. FOR IMMEDIATE RELEASE 12 October 2015 Myer Holdings Limited 2015 Annual Report and Notice of Annual General Meeting Myer Holdings Limited...

TANGLEWOOD CASEBOOK for use with STAFFING ORGANIZATIONS 5th Ed. Kammeyer-Mueller 1 TANGLEWOOD CASEBOOK To accompany Staffing Organizations, fifth edition, 2006. Prepared by John Kammeyer-Mueller...

2 3 4 5 6 7 8 9 10 11 12 13 14 15 Questions: 1. Matching customer demand to production scheduling is a crucial activity for any company. Explain why this was problematic for Geneva. 2. Describe...

Project Management Casebook David I. Cleland, Karen M. Bursic, Richard Puerzer, and A. Yaroslav Vlasak Library of Congress Cataloging-in-PublicationData Project management casebook /edited by David...

The frequency doublers in problem use a two-quadrant multiplier. (a) What effect does this have on the output signal? (b) The circuit in figure is one solution. Show that vo has a double-frequency...

The following are the financial statements for Nederland Consumer Products Company for the fiscal year ended September 30, 2011. Nederland Consumer Products Company Income Statement for the Fiscal...

Individuals are the only victims of financial crimes. True False

Diagnostic tests of medical conditions can have several types of results. The test result can be positive or negative, whether or not a patient has the condition. A positive test (+) indicates that...