Question

a firm has found that it provides a 90% order fill rate( orders shipped complete). 90% on-time delivery, 90% of its orders arrive at customer destination in perfect condition, and 90% of the time all documentation is correct - these are elements of the perfect order for this company's customers what is the best estimate of its perfect order performance

Answer 1

The best estimate of the firm's perfect order performance is 65.61%, calculated by multiplying the success rate of each individual element, which is 90%.

Step-by-step explanation:

To estimate the perfect order performance, we must consider all elements - order fill rate, on-time delivery, condition upon arrival, and documentation accuracy. Each element has a 90% success rate. To find the overall perfect order performance, we multiply the percentages of each individual element:

0.90 (order fill rate) × 0.90 (on-time delivery) × 0.90 (condition upon arrival) × 0.90 (documentation accuracy) = 0.6561

Thus, the best estimate of the firm's perfect order performance is 65.61%.

The best estimate of the company's perfect order performance can be calculated by multiplying the individual performance rates. In this case, the company has a 90% order fill rate, 90% on-time delivery rate, 90% perfect condition rate, and 90% correct documentation rate.

Therefore, the best estimate of its perfect order performance is 0.9 * 0.9 * 0.9 * 0.9 = 0.6561, or approximately 65.61%.