Refer to Exercise 9-46. Until now, KDS used a commercial vendor to ship orders. The manager of Distribution believes the system described in Exercise 9-46 is too simple in two ways. First, if a retailer is ordering from KDS for the first time, Distribution has to take time to verify the Retailer details (shipping address, credit, and so on). The manager estimates this additional time to total 30 minutes. In addition, some orders are quite complex. This happens when a retailer orders many different items in one order. The manager estimates that a complex order takes an additional 20 minutes to pick, on average.
a. Write out the time equation for taking an order.
b. Write out the time equation for picking an order.
c. Using the data from Exercise 9-46 and the additional data here, compute the cost of filling a complex order from a new retailer. Assume that all of the items in the order are in stock and that the retailer will not pick the order up at the KDS loading dock.
This question was answered on: Jul 11, 2017
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