Sales volume has been dropping at Mumford Industries. During this time, the Shipping Department manager has been under severe financial constraints. Most of the Shipping Department’s efforts are related to pulling inventory from the warehouse for each order and performing the paperwork. The paperwork involves preparing shipping documents for each order. Thus, the pulling and paperwork effort associated with each sales order is essentially the same, regardless of the size of the order. The Shipping Department manager has discussed the financial situation with senior management. Senior management has responded by pointing out that because sales volume has been dropping, the amount of work in the Shipping Department also should be dropping. Thus, senior management told the Shipping Department manager that costs should be decreasing in the department. The Shipping Department manager prepared the following information: Month Sales Volume Number of Customer Orders Sales Volume per Order January $472,000 1,180 400 February 475,800 1,220 390 March 456,950 1,235 370 April 425,000 1,250 340 May 464,750 1,430 325 June 421,200 1,350 312 July 414,000 1,380 300 August 430,700 1,475 292 Given this information, how would you respond to senior management?

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Description: Sales volume has been dropping at Mumford Industries. During this time, the Shipping Department manager has been under severe financial constraints. Most of the Shipping Department’s efforts are related to pulling inventory from the warehouse for eac

MATLAB: An Introduction with Applications

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ISBN:9781119256830

Author:Amos Gilat

Publisher:Amos Gilat

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Sales volume has been dropping at Mumford Industries. During this time, the Shipping Department manager has been under severe financial constraints. Most of the Shipping Department’s efforts are related to pulling inventory from the warehouse for each order and performing the paperwork. The paperwork involves preparing shipping documents for each order. Thus, the pulling and paperwork effort associated with each sales order is essentially the same, regardless of the size of the order. The Shipping Department manager has discussed the financial situation with senior management. Senior management has responded by pointing out that because sales volume has been dropping, the amount of work in the Shipping Department also should be dropping. Thus, senior management told the Shipping Department manager that costs should be decreasing in the department.

The Shipping Department manager prepared the following information:

Month	Sales Volume	Number of Customer Orders	Sales Volume per Order
January	$472,000	1,180	400
February	475,800	1,220	390
March	456,950	1,235	370
April	425,000	1,250	340
May	464,750	1,430	325
June	421,200	1,350	312
July	414,000	1,380	300
August	430,700	1,475	292

Given this information, how would you respond to senior management?

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