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Management Studies

A product delivery manager for a mail order shipment company is trying to improve the responsiveness and efficiency of their delivery service to increasing competition. The manager will select a delivery service based on on-time delivery rates. A Wall Street Journal article compared U. S. Postal Service’s Priority Mail shipments to cheaper Postal first-class shipments (first-class deliveries start as low as $0.34 and Priority Mail start at $3.50). When comparing shipments intended for delivery within 3 days, first-class deliveries failed to deliver on-time 19% of the time, while Priority Mail failed 33% of the time. If 10 items are to be shipped first-class to 10 different destinations claimed to be in a 3 day delivery location, what is the probability that: a. zero items will take more than 3 days b. exactly one item will take more than 3 days If the shipments are made using Priority Mail, what is the probability that: c. zero items will take more than 3 days d. exactly one item will take more than 3 days Compare the results for first class and Priority Mail deliveries. Based on this information, which service should the manager choose?

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Marketing Management, Management Studies

Category:- Marketing Management
Reference No.:- M91762536

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