Sales volume has been dropping at Northumberland Company. During this time, however, the Shipping Department...
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Sales volume has been dropping at Northumberland Company. During this time, however, the Shipping Department manager has been under severe financial constraints. The manager knows that most of the Shipping Department's effort is related to pulling inventory from the warehouse for each order and performing the paperwork. The paperwork involves preparing shipping documents for each order. Thus, the pulling and paperwork effort associated with each sales order is essentially the same, regardless of the size of the order. The Shipping Department manager has discussed the financial situation with senior management. Senior management has responded by pointing out that sales ent should be dropping. Thus, senior management told the Shipping Department manager that costs should be decreasing in the department. The Shipping Department manager prepared the following information: Sales Volume per Order Month January February March April May June July August Sales Volume 472,000 475,800 456,950 425,000 464,750 421,200 414,000 Number of Customer Orders 1,180 1,220 1,235 1,250 1,430 1,350 1,380 1,475 400 390 370 340 325 312 300 292 30,700 Given this information, how would you respond to senior management
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