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Apples & Oranges Inc. is trying to become more efficient in shipping goods. It is...

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Accounting

Apples & Oranges Inc. is trying to become more efficient in shipping goods. It is experimenting with two new shipping procedure initiatives aimed at achieving this strategic objective. The company has provided the following data regarding the two procedures after one month of implementation:

Shipping Procedure A Shipping Procedure B
Number of shipping errors 102 126
Hours from ordered to shipped 16.3 19.2
Shipping time (hours from shipped to delivered) 6.7 9.5
Pounds of goods shipped 900,000 900,000
Number of shipments 300 300

a. Compute the following performance metrics for each program:

(1) Average number of shipping errors per shipment, rounded to two decimal places.

Procedure A: error per shipment

Procedure B: error per shipment

(2) Hours from ordered to delivered, rounded to one decimal place.

Procedure A: hours from ordered to delivered

Procedure B: hours from ordered to delivered

(3) Average pounds of goods per shipment.

Procedure A: lbs. of goods per shipment

Procedure B: lbs. of goods per shipment

b. Which program should the company implement moving forward?

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