subject
Business, 30.10.2020 18:00 aiffland113

A manufacturing company doesn't charge its customers for shipping. It's products are small and lightweight, so there isn't much difference between the cost to ship small orders and large orders. Shipment costs average $84 per. The company has a challenge to reduce its costs. One idea they are considering is charging customers for small orders. They did a survey asking customers what they would do if the company imposed a $90 fee on orders <$500. Of the 172 customers surveyed, 51 indicated they would pay the fee. The others said they would consolidate their orders. The company estimated that customers who want to avoid the fee consolidate to realize a 33% reduction in their orders and a $1.15 million reduction in freight expense. The company's warehouse is run by a UConn MBA who aced OPIM 5110. She knows that it would be dangerous to bet her budget on such sketchy data. So, she decides to build a Monte Carlo model. She is responsible only for the freight budget, not incremental revenue. Using the data from the survey and the prior quarter's shipping volume, she assumed that the 45,800 orders would be candidates for consolidation and that the actual consolidation would be 33% with a standard deviation of 3.3%. She assumes normality in the distribution. She notes that shipping volumes are fairly steady over the past few quarters. If her boss is asking for $1,250,000 in quarterly savings from the project, what % chance does this policy have of achieving it

ansver
Answers: 2

Other questions on the subject: Business

image
Business, 22.06.2019 01:30, lee1677
What is an example of a good stock to buy during economic expansion? a) cyclical stock b) defensive stock c) income stock d) bond
Answers: 3
image
Business, 22.06.2019 18:00, dpazmembreno
Carlton industries is considering a new project that they plan to price at $74.00 per unit. the variable costs are estimated at $39.22 per unit and total fixed costs are estimated at $12,085. the initial investment required is $8,000 and the project has an estimated life of 4 years. the firm requires a return of 8 percent. ignore the effect of taxes. what is the degree of operating leverage at the financial break-even level of output?
Answers: 3
image
Business, 22.06.2019 21:50, sippincoronas
Q3. loral corporation manufactures parts for an aircraft company. it uses a computerized numerical controlled (cnc) machining center to produce a specific part that has a design (nominal) target of 1.275 inches with tolerances of ± 0.020 inch. the cnc process that manufactures these parts has a mean of 1.285 inches and a standard deviation of 0.005 inch. compute the process capability ratio and process capability index, and comment on the overall capability of the process to meet the design specifications.
Answers: 1
image
Business, 23.06.2019 11:00, t0ri21
If you wanted to gain workplace experience and learn more about a company, what opportunity would be most ? a. job shadowing b. an informational interview c. an internship d. online research
Answers: 2
You know the right answer?
A manufacturing company doesn't charge its customers for shipping. It's products are small and light...

Questions in other subjects:

Konu
Chemistry, 21.10.2020 20:01
Konu
Biology, 21.10.2020 20:01