Q46 A retail telephone catalogue company takes catalogue orders from customers and then sends the completed...
Q46
A retail telephone catalogue company takes catalogue orders from customers and then sends the completed orders to the warehouses to be filled. An operator processes an average of 45 orders per day. The cost of processing an order is $1.15, and it costs $0.65 to correct an order that has been filled out incorrectly by the operator. An operator averages 7% bad orders per day, all of which are reworked prior to filling the customer order. Determine the quality–productivity ratio for an operator. [2 Marks]
Homework Answers
| Good Quality Units | |||||||
| QPR | Input* Processing cost + Reworked units*Rework cost | ||||||
| Total Orders | 45.00 | ||||||
| Defective (7%) | 3.15 | Processing cost | 1.15 | ||||
| Good units | 41.85 | Rework cost | 0.65 | ||||
| QPR | 45/(45*1.15+3.15*0.65) | ||||||
| QPR | 0.83647 | ||||||
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Q46
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customers and then sends the completed...
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