Ch 16-screen Custom View Soved lanes C. × Instructions h Question 5 (of T Save &

Question

Ch 16-screen Custom View Soved lanes C. × Instructions h Question 5 (of T Save & Ext 1000 points Problem 9-8 Jones Company found the folowing information about delivery to customers Late delivenes percent of the orders Earty artivals, which are unacceptable to customers, occurred for 2 orders. The company also ntormation on 3 percent of the invoices billed to customers. Assume that the orders shipped completea or 6 experienced a 1 2 percent damage rate during delivery It also had inco 77 5% Based on this information, what was the approximate perfect order performance at Jones C Round your answer to 2 decimal places.) ompany? 244 PM Saturday tab caps lock

Explanation / Answer

Data provided in question is as follows:

Late Deliveries of order = 6%, On time deliveries of orders = 1 – 0.06 = 0.94 = 94%

Early Arrivals of orders = 2%, Delivery of orders after specified time = 100 – 2 = 98%

Delivery of orders with defects = 1.2%, Damage free deliveries = 100 – 1.2 = 98.8%

Orders with incorrect invoice = 3%, Orders with correct invoices = 100 – 3 = 97%

Orders shipped completely = 77.5%

Perfect order performance is calculated by multiplying the all individual order performance

Perfect Order performance = % of on-time deliveries x % of orders delivered at specified time x % of damage –free deliveries x % of orders with correct invoices x % of orders shipped completely

Perfect Order performance =0.94 x 0.98 x 0.988 x 0.97 x 0.775 = 0.6842

Perfect Order performance = 68.42%

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