Consider the perfect order calculation for Bartley Company. Last year Bartley Co

Question

Consider the perfect order calculation for Bartley Company. Last year Bartley Company experienced the following results 9.4 million orders processed 50,000 orders delivered late 10,000 orders incomplete 40,000 orders damaged 25,000 orders billed incorrectly Furthermore, these 125,000 failures were spread across 120,000 orders, which meant that some orders had more than one problem. Calculate the percentage of perfect orders if all performance results above remained the same except a. 65,000 are delivered late, and total failures are now spread across 140,000 orders. The percentage of perfect orders is | % if 65,000 are delivered late, and total failures are spread across 140,000 orders. (Enter your response rounded to one decimal place.) b. 65,000 are delivered late, but total failures are still spread across 120,000 orders The percentage o perfect orders is % if 65,000 are delivered ate, but otal ailures are stil spread across 120 00 order nter ou response rounded to one dec mal place. c.According to the logic of the perfect order measure, does an incorrectly billed order have the same impact as a damaged order? OA. An incorrectly billed order has the same impact as a damaged order. OB. An incorrectly billed order has a higher impact than a damaged order. OC. An incorrectly billed order has a lower impact than a damaged order. O D. It is impossible to give the answer without additional information.

Explanation / Answer

A perfect order is one which is on time, complete , not damaged and billed correctly.

a) Orders with at least one defect = 140,000

% of perfect orders = (9,400,000 - 140,000) / 100 = 98.51%

b) Orders with at least one defect = 120,000

% of perfect orders = (9,400,000 - 120,000) / 100 = 98.72%

c) For the metric perfect order measure, any of the four failures of makes it an imperfect order. This implies that an incorrectly billed order has the same impact as a damaged order. Hence, Answer is A.

Note - From a cost perspective damaged order leads to returns, increasing the magnitude of loss. For incorrect billing one may just need to build a new invoice.

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