Rene's Royal Fabrics, a manufacturer of fashion garments and fabric, uses three primary carriers to move fabrics
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Question:
Rene's Royal Fabrics, a manufacturer of fashion garments and fabric, uses three primary carriers to move fabrics from its Toronto factory to retailers and fashion designers in Canada and the United States. He wants to evaluate the performance of the three carriers. He collected data for the following metrics over a four-month period.
Performance Criteria | Allied Transport | Bestway Freight | Certaint Carriers |
---|---|---|---|
On-time delivery | 99% | 98.5% | 98% |
Loads with damage claims | 0.8% | 1.8% | 0.5% |
Customer satisfaction ratings | 4.5 | 4 | 3.8 |
Billing accuracy | 99.2% | 99.5% | 98.1% |
Loads rejected | 1.4% | 2.2% | 0.8% |
Rene asked Abimbola, his transportation manager, to develop a scorecard to help compare the carriers on these five metrics. Abimbola came up with the following chart:
Performance Criteria | Weight Factor (how important the criteria is to your company) | Performance Evaluation | Maximum Score Possible | Actual Score (weight factor multiplied by performance evaluation) |
---|---|---|---|---|
On-time delivery | 30 | more than 98.5% ⇒ 5 96.01 to 98.5% ⇒ 4 93 to 96% ⇒ 2 less than 93% ⇒ 0 | 150 | |
Loads with damage claims | 30 | less than 0.5% ⇒ 5 0.5 to 1% ⇒ 4 1.01 to 2% ⇒ 2 more than 2% ⇒ 0 | 150 | |
Customer satisfaction | 20 | more than 4.5 ⇒ 5 4.01 to 4.5 ⇒ 4 3 to 4 ⇒ 2 less than 3 ⇒ 0 | 100 | |
Billing accuracy | 10 | more than 99% ⇒ 5 97.01 to 99% ⇒ 4 95 to 97% ⇒ 2 less than 95% ⇒ 0 | 50 | |
Loads rejected | 10 | less than 1% ⇒ 5 1% to 2% ⇒ 4 2.01% to 3% ⇒ 2 more than 3% ⇒ 0 | 50 | |
Total Score | 500 |
Answer the following three questions:
- Calculate the performance score (actual score) for each of the three carriers
- Which carrier would you recommend that Rene consider for elimination? Why?
- If Rene decides to keep all three carriers, what should each of them work to improve?
Related Book For
Smith and Roberson Business Law
ISBN: 978-0538473637
15th Edition
Authors: Richard A. Mann, Barry S. Roberts
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