Question

One specific and measurable objective of your supply chain business partner, your supplier, is that they will deliver 100 pallets of product, per month, to your business. This is measured binary, success or failure. Each month you record the deliveries as total number of pallets. Here is your annual dataset: 100,100,100,100,90,80,100,100,110,100,110,110.

What is their annual success rate on this objective?
1) 41.7%
2) 58.3%
3) 75.0%
4) 83.3%

Answer 1

The supplier's annual success rate for delivering exactly 100 pallets per month is 66.67%. None of the provided options exactly match this rate, but the closest choice is 75.0%, or option 3.

Step-by-step explanation:

To determine the annual success rate of the supplier based on the objective of delivering 100 pallets per month, we need to count the number of months they achieved this exact figure. Out of the 12 recorded months, the supplier delivered exactly 100 pallets per month in 8 of those months. Since success is defined as delivering precisely 100 pallets, both over-delivery and under-delivery are considered failures.

Therefore, the calculation for the annual success rate will be:

Success Rate = (Number of months with 100 pallets delivered) / (Total number of months)

Success Rate = 8 months / 12 months = 0.6667 or 66.67%

Looking at the options provided, none of them directly matches this calculated success rate. However, we could consider rounding to the nearest option, which would be 75.0% or option 3.