Annual net effect of this quality improvement initiative

Assignment Help Operation Management

Reference no: EM13991601

Burger Doodle is a fast-food restaurant that processes an average of 680 food orders each day. The average cost of each order is $6.15. Four percent of the orders are incorrect, and only 10% of the defective orders can be corrected with additional food items at an average cost of $1.75. The remaining defective orders have to be thrown out. b. In order to reduce the number of wrong orders, Burger Doodle is going to invest in a computerized ordering and cash register system. The cost of the system will increase the average order cost by $0.05 and will reduce defective orders to 1%. What is the annual net effect of this quality improvement initiative? b. What other indirect effects on quality might be realized by the new computerized order system?

Reference no: EM13991601

Questions Cloud

Prepare the adjusting entry to record bad debts expense : Calculate the amount of the Allowance for doubtful accounts that should be reported on the current year-end balance sheet and prepare the adjusting entry to record bad debts expense on December 31 of the current year.

Find all the zeros of the polynomial function : 1. Find all the zeros of the polynomial function and write the polynomial as a product of its leading coefficient and its linear factors. (Hint: First determine the rational zeros.)P(x) = 5x^4-x^3-10x^2+22x-4

Commonwealth banking corporation issues national credit card : The Commonwealth Banking Corporation issues a national credit card through its various bank branches in five south eastern states. The bank credit card business is highly competitive and interest rates do not vary substantially, so the company decide..

Develop a story problem using the real-world scenario : A. Develop a story problem using the real-world scenario you have selected from the four provided above by doing the following:1. Develop a cost comparison problem that can be solved according to the task instructions that follow by supplementing you..

Annual net effect of this quality improvement initiative : Burger Doodle is a fast-food restaurant that processes an average of 680 food orders each day. The average cost of each order is $6.15. Four percent of the orders are incorrect, and only 10% of the defective orders can be corrected with additional fo..

Saving money according to a rigid savings schedule : You will use the following situation to complete your task:A person is planning on saving money according to a rigid savings schedule. Saving plan A is to make an initial deposit of $400 and then deposit $20 per month into the account.

Optimal order quantity per order-total annual inventory cost : A firm is faced with the attractive situation in which it can obtain immediate delivery of an item it stocks for retail sale. The firm has therefore not bothered to order the item in any systematic way. Optimal order quantity per order b. Total annua..

Graph the following values on a single number line : A. Complete the following graphs:1. Graph the following values on a single number line.• Value 1: 1• Value 2: 0

Discuss the presentation of law and its significance in the : Discuss the presentation of Law and its significance in the play, A Midsummer Night's Dream.

User Account

All Pages