Compute the average product cost

Assignment Help Operation Management

Reference no: EM13905492

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.

A. Compute the average product cost.

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?

C. What other indirect effects on quality might be realized by the new computerized order system?

Reference no: EM13905492

Questions Cloud

How does a network topology affect data communication : As an information systems manager, you will want to address these issues and maintain control providing rapid responses as often as needed. What types of networks have you used? What are some experiences you have had concerning the common threats lis..

Heart attack medical report : Heart Attack Medical Report - Write a comprehensive medical report on a disease we have studied up to this point. Be sure to include all relevant medical history, testing/diagnostics, treatment options and recommended plan of action

Output is monitored using means of samples of observations : An automatic filling machine is used to fill 1-liter bottles of cola. The machine’s output is approximately normal with a mean of 0.99 liter and a standard deviation of 0.05 liter. Output is monitored using means of samples of 29 observations.

Identify a process that could benefit from a control chart : Identify a process that could benefit from a control chart, and describe the metrics that you would use for this control chart. Which control chart should this process utilize and why?

Compute the average product cost : 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..

Making process for recruiting and selecting salespeople : What would be the decision making process for recruiting and selecting salespeople for a consumer goods company, business-to-business (non-consumer) and government companies?

Global presence-discuss the labor relations issues : Using your browser, conduct an Internet search using the words “global presence.” Select a company and explore its global strategies. Select a second source of information about this company. Consider their annual report or a news story or a business..

A local farm produces cases of perishable food products : A local farm produces cases of perishable food products. The products such as vegetables and fruits are packed in wooden cases. Each case costs $10 and sells for $20. If there are any cases not sold by the end of the day, they are sold to a large foo..

Organizations are best served by presence in social media : What types of businesses and organizations are best served by a presence in social media? What are some examples of the ways that other businesses have successfully/unsuccessfully leveraged and branded themselves with social media?

User Account

All Pages