AJJ Reed is a family‑owned business that is concerned about their delivery times given recent competition from a newly-opened, nearby, national‑chain pizza service. To compete, AJJ Reed Pizza is considering offering a 30-minute delivery guarantee, offering a coupon for a free pizza if the delivery is not completed in 30 minutes or less (from the end of submitting the order to arrival at the door). Before doing so the owner, A J J. Reed, wants to learn more from the data he collected.

AJJ's delivery service operates from 4 pm to midnight every day of the week. Reed uses approximately 5-6 drivers each night for deliveries. To get information about current service, a sample of deliveries during one month was taken, totaling 240 deliveries in the sample (8 orders per day for 30 days). Reed made all measurements on the sample. He randomly selected one order each hour, and measured the 3 times in the data set for that order. Reed rode with the driver to get an accurate measure of the travel time.  The data given in the end table

contains the following variables:

Order	1..240
Day	1 = Mon to 7 = Sun
Hour	Start of the hour in which the order was taken: 4-11 pm
prep time	Time from the end of the order submission to when the pizza is boxed for delivery (mins)
WaitTime	Time from when the pizza is boxed for delivery to when the deliverer leaves the store with the pizza (mins)
TravelTime	Time from when the deliverer leaves the store with the pizza to when the deliverer arrives at the customer's door (mins)
total time	Sum of the three-component times (minutes)
Late	1 if TotalTime > 30, 0 otherwise

Assignment

Perform appropriate analyses and draw appropriate conclusions for AJJ Reed Pizza.  Based on his initial look at the data, Reed has the following specific questions:

1. How do the 3 parts of the process contribute to the total time?
2. Waiting Times
   1. Reed wonders if lowering the Wait Time would be a good strategy for improving Total Time of delivery. He is wondering what the impact would be of aggressively reducing this time. If none of the wait times were greater than 8 minutes, how would this affect the mean total delivery time?
   2. Reed calculates that the maximum percentage of deliveries that exceed 30 minutes must be less than 10% for the policy to be cost-effective. Is there evidence that the current percentage of the time that Moose fails to meet the 30-minute deadline is less than 10%? If wait times were all less than 8 minutes, would the percentage of on-time deliveries be less than 10%?
3. Days/Times
   1. Does the day of the week affect total delivery times?
   2. Does the hour of delivery affect total delivery times?
   3. Is the on-time rate different on weekends (i.e., Fridays and Saturdays) vs. weekdays?
   4. Is the on-time rate different at different times of the day?

The body of the main report should be written for a general managerial audience that is statistically naïve.

Ref:- Introduction to Business Statistics 6th Edition. Pronto Pizza Business Case

Answer rating: 100% (QA)

Based on the data collected by AJJ Reed Pizza the total time of delivery is composed of three parts ... View the full answer