Question: Performance metrics Apples & Oranges Inc. is trying to become more efficient in shipping goods. It is experimenting with two new shipping procedure initiatives

Performance metrics Apples & Oranges Inc. is trying to become more efficient

Performance metrics 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 Number of shipping errors 90 Hours from ordered to shipped 15.3 Shipping time (hours from shipped to delivered) 6.7 Pounds of goods shipped 840,000 Number of shipments 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: error per shipment Procedure B: error per shipment (2) Hours from ordered to delivered, rounded to one decimal place. Procedure A: hours from ordered to delivered Procedure B: hours from ordered to delivered (3) Average pounds of goods per shipment. Procedure A: Procedure B: lbs. of goods per shipment lbs. of goods per shipment b. Which program should the company implement moving forward? Shipping Procedure B 120 17.2 9.5 700,000 250

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