& Oranges Inc. is trying to become more efficient in shipping goods. It is experimenting with two new shipping procedure initiativ at achieving this strategic objective. The company has provided the following data regarding the two procedures after one month mentation: er of shipping errors from ordered to shipped ng time (hours from shipped to delivered) s of goods shipped Shipping Procedure A Shipping Procedure B 144 80 17.3 17.2 7.7 8.5 1,440,000 600,000
& Oranges Inc. is trying to become more efficient in shipping goods. It is experimenting with two new shipping procedure initiativ at achieving this strategic objective. The company has provided the following data regarding the two procedures after one month mentation: er of shipping errors from ordered to shipped ng time (hours from shipped to delivered) s of goods shipped Shipping Procedure A Shipping Procedure B 144 80 17.3 17.2 7.7 8.5 1,440,000 600,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text: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:
Number of shipping errors
Hours from ordered to shipped
Shipping time (hours from shipped to delivered)
Pounds of goods shipped
Number of shipments
a. Compute the following performance metrics for each program:
(1) Average number of shipping errors per shipment, rounded to two decimal places.
Procedure A:
Procedure B:
Procedure A:
error per shipment
Procedure B:
error per shipment
(2) Hours from ordered to delivered, rounded to one decimal place.
hours from ordered to delivered
hours from ordered to delivered
(3) Average pounds of goods per shipment.
Procedure A:
Procedure B:
Shipping Procedure A Shipping Procedure B
144
80
17.3
17.2
7.7
8.5
lbs. of goods per shipment
lbs. of goods per shipment
1,440,000
400
600,000
200
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