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: Line Item Description Shipping Procedure A Shipping Procedure B Number of shipping errors 144                 120                  Hours from ordered to shipped 17.3                 20.2                  Shipping time (hours from shipped to delivered) 6.7                 9.5                  Pounds of goods shipped 1,520,000                 720,000                  Number of shipments 400                 300                  This information has been collected in the Microsoft Excel Online file. Open the spreadsheet, perform the required analysis, and input your answers in the question below.     Open spreadsheet   a. Compute the following performance metrics for each program: (1) Average number of shipping errors per shipment, rounded to two decimal places. Procedure A: fill in the blank 1 of 2 error per shipment Procedure B: fill in the blank 2 of 2 error per shipment (2) Hours from ordered to delivered, rounded to one decimal place. Procedure A: fill in the blank 1 of 2 hours from ordered to delivered Procedure B: fill in the blank 2 of 2 hours from ordered to delivered (3) Average pounds of goods per shipment. Procedure A: fill in the blank 1 of 2 lbs. of goods per shipment Procedure B: fill in the blank 2 of 2 lbs. of goods per shipment b. Which program should the company implement moving forward?

Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter14: The Balanced Scorecard And Corporate Social Responsibility
Section: Chapter Questions
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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:

Line Item Description Shipping Procedure A Shipping Procedure B
Number of shipping errors 144                 120                 
Hours from ordered to shipped 17.3                 20.2                 
Shipping time (hours from shipped to delivered) 6.7                 9.5                 
Pounds of goods shipped 1,520,000                 720,000                 
Number of shipments 400                 300                 

This information has been collected in the Microsoft Excel Online file. Open the spreadsheet, perform the required analysis, and input your answers in the question below.

 

 
Open spreadsheet

 

a. Compute the following performance metrics for each program:

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

Procedure A: fill in the blank 1 of 2 error per shipment
Procedure B: fill in the blank 2 of 2 error per shipment

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

Procedure A: fill in the blank 1 of 2 hours from ordered to delivered
Procedure B: fill in the blank 2 of 2 hours from ordered to delivered

(3) Average pounds of goods per shipment.

Procedure A: fill in the blank 1 of 2 lbs. of goods per shipment
Procedure B: fill in the blank 2 of 2 lbs. of goods per shipment

b. Which program should the company implement moving forward?

 

 

 

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