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A candy company produces 2 products, butter scotch bits(BB) price $2.00/bag, pro

ID: 457162 • Letter: A

Question

A candy company produces 2 products, butter scotch bits(BB) price $2.00/bag, profits $0.20/bag and chocolate crud(CC) price $1.00/bag, profits $0.08/bag. The table below provides a list of the orders taken from their two customers (A,Z) during the year and the logistics actions taken.

Order#

Customer

Units ordered

Units shipped

Order cycle time

Trace info request

Special request

Carrier damage

Warehouse damage

Replacement of damaged product requested & filled from warehouse

1

A

20 bag BB

20 bag CC

10 bag CC

8 days

5 bag CC

Not replaced

2

A

40 bag BB

30 bag BB

5 days

15 bag BB

Replaced in 3 days

3

Z

20 bag BB

10 bag CC

……..

10 bag CC

14 days

Yes/yes

1/2 hour

3 am delivery performed

4

Z

20 bag CC

10 bag CC

5 days

5

Z

40 bag BB

50 bag CC

40 bag BB

40 bag CC

8 days

yes/yes

2 hours

3am delivery performed

15 bag CC

Replaced in 11 days

Using the table above, provide the following customer service measures (show calculations):   

?

Order#

Customer

Units ordered

Units shipped

Order cycle time

Trace info request

Special request

Carrier damage

Warehouse damage

Replacement of damaged product requested & filled from warehouse

1

A

20 bag BB

20 bag CC

10 bag CC

8 days

5 bag CC

Not replaced

2

A

40 bag BB

30 bag BB

5 days

15 bag BB

Replaced in 3 days

3

Z

20 bag BB

10 bag CC

……..

10 bag CC

14 days

Yes/yes

1/2 hour

3 am delivery performed

4

Z

20 bag CC

10 bag CC

5 days

5

Z

40 bag BB

50 bag CC

40 bag BB

40 bag CC

8 days

yes/yes

2 hours

3am delivery performed

15 bag CC

Replaced in 11 days

Explanation / Answer

Product availability % in units   = Units shipped / Units ordered *100

Butter Scotch bits(BB)

Units ordered - Units shipped

A=20 bag BB - NIL

A=40 bag BB - 30 Bag

Z=20 bag BB -NIL

Z=40 bag BB -40 bag BB

____________________________

Total =120 - 70

= 70 / 120 *100=58.33%

___________________________________

Product availability % in units   = Units shipped / Units ordered *100

chocolate crud(CC)

Units ordered - Units shipped

A) 20 bag CC - 10 bag CC

Z)10 bag CC - 10 bag CC

Z)20 bag CC - 10 bag CC

Z)50 bag CC - 40 bag CC

____________________________

Total=100 - 70

= 70 / 100 *100=70%

if combine both BB+CC

Units ordered120 +100 =220

Units shipped 70 + 70=140

=140 / 220 *100

=63.36%

___________________________________________________________________________

Product availability % in $ profits =$19.60 / $32 *100

=61.25%

Units ordered

120   * 0.20 = $24

100 *$0.08 =$8

=$24+$8=$32

Units shipped 70 * 0.20/bag =$14

70 * $0.08 =$5.6

=$14 + $5.6

=$19.60

_____________________________________________________________________________

Average order cycle time = 8 days+5days+14 days +5 days +8 days

=40 days / 5 customer

=8 days per customer

_____________________________________________________________________________

Malfunctions ( % of customer A $ sales damaged)

Customer A = 10 bag CC + 30 bag BB

=40

Damage =Carrier damage + Warehouse damage

=15 bag BB+ 5 bag CC

=20 bag

= 20 /40 *100

=50%

____________________________________________________________________