Apples & Oranges Inc. is trying to become more efficient in shipping goods. It is...
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Accounting
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
102
126
Hours from ordered to shipped
16.3
19.2
Shipping time (hours from shipped to delivered)
6.7
9.5
Pounds of goods shipped
900,000
900,000
Number of shipments
300
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: lbs. of goods per shipment
Procedure B: lbs. of goods per shipment
b. Which program should the company implement moving forward?
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