Question: Each day, a FedEx competitor processes approximately 7 5 , 0 0 0 shipments. Suppose that they use the same Service Quality Index as FedEx

Each day, a FedEx competitor processes approximately

75, 000

shipments. Suppose that they use the same Service Quality Index as FedEx and identified the following numbers of errors during a

5 -

day week

(

see the "FedEx: Measuring Service Performance" box

) .

These values are hypothetical and do not reflect any real company

s actual performance.

Description Weight Number of Errors

Complaints reopened

3 105

Damaged packages

10 15

International

1 102

Invoice adjustments

1 283

Late pickup stops

3 202

Lost packages

10 4

Missed proof of delivery

1 27

Right date late

1 749

Traces

3 118

Wrong day late

5 13

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

)

%

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