Question: Apples & Oranges Inc. is trying to become more efficient in shipping goods. It is experimenting with two new shipping procedure initiatives aimed at achieving
Apples & Oranges Inc. is trying to become more efficient in shipping goods. It is experimenting with two new shipping procedure initiatives aimed at achieving this strategic objective. The company has provided the following data regarding the two procedures after one month of implementation:
| Shipping Procedure A | Shipping Procedure B | ||
| Number of shipping errors | 144 | 126 | |
| Hours from ordered to shipped | 17.3 | 19.2 | |
| Shipping time (hours from shipped to delivered) | 6.7 | 8.5 | |
| Pounds of goods shipped | 1,360,000 | 660,000 | |
| Number of shipments | 400 | 300 |
a. Compute the following performance metrics for each program:
(1) Average number of shipping errors per shipment, rounded to two decimal places.
Procedure A: fill in the blank 1 error per shipment
Procedure B: fill in the blank 2 error per shipment
(2) Hours from ordered to delivered, rounded to one decimal place.
Procedure A: fill in the blank 3 hours from ordered to delivered
Procedure B: fill in the blank 4 hours from ordered to delivered
(3) Average pounds of goods per shipment.
Procedure A: fill in the blank 5 lbs. of goods per shipment
Procedure B: fill in the blank 6 lbs. of goods per shipment
b. Which program should the company implement moving forward?
Procedure AProcedure B
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