What are the implications for interpreting this measure

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Reference no: EM13899656

Last year, Bartley Company experienced the following results:

5.4 million Orders processed; 30,000 orders delivered late; 25,000 orders incomplete; 25,000 orders damaged; 20,000 orders billed incorrectly furthermore, these 100,000 failures were spread across 90,000 orders, which meant that some orders had more than one problem. the percentage of perfect orders is therefore: 100%(5,400,000-90,000/5,400,000)=98.3%

4. (show all work) Consider the perfect order calculation for bartley company. Recalculate the percentage of perfect orders if all performance results remained the same except:

A. 25,000 are delivered late, and total expenditures are now spread across 85,000 orders.

B. 25,000 are delivered late, but total failures are still spread across 90,000 orders.

C. According to the logic of the perfect order measure, does an incorrectly billed order have the same impact as a damaged order? Does this seem reasonable? What are the implications for interpreting this measure?

Reference no: EM13899656

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