Question

New Process Inc., a large mail-order supplier of women’s fashions, advertises same-day service on every order. Recently, the movement of orders has not gone as planned, and there were a large number of complaints. Bud Owens, director of customer service, has completely redone the method of order handling. The goal is to have fewer than 10 unfilled orders on hand at the end of 95% of the working days. Frequent checks of the unfilled orders at the end of the day reveal that the distribution of unfilled orders follows a Poisson distribution with a mean of 4 orders. Has New Process, Inc. lived up to its internal goal? Mr. Owens wants some evidence to support your answer. Do the calculations in Excel and include the text for an e-mail to Mr. Owens providing your answer and explaining the evidence.  

Answer 1