value 10.00 points Problem 9-6 An analysis of order and shipment data shows that

Question

value 10.00 points Problem 9-6 An analysis of order and shipment data shows that the order fill rate is 92.4% and ABBA collected the following data concerning customer service performance: Late delivery-5 percent Damage 1 percent Incorrect documentation-3 percent Assuming these are the critical attributes for perfect orders, how well did ABBA perform? Consider four attributes in your calculation-the three attributes given above and the order fill rate given above. (Round your answer to 1 decimal place.) order

Explanation / Answer

With respect to the three factors, ABBA’s perfect order performance =

(100-5)%*(100-1)%*(100-3)% = 95%*99%*97%=91.23%

Let us consider that receiving all the products is important and it must be modified by the order fill rate, it will result in

Perfect order performance=91.23%*92.4%=84.297%

So answer is :- 84.297%=84.3%

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