A firm has found that it provides a 90 percent order fill rate (orders shipped complete), 90 percent on-time delivery, 90 percent of its orders arrive at customers' destinations in perfect condition, and 90 percent of the time all documentation is correct. These are all of the elements of a perfect order for this company's customers. If the firm improves its performance in on-time delivery to 98 percent, what is its new perfect order performance?
A. 88 percent
B. 98 percent
C. 0 percent
D. 80 percent
E. 71.4 percent
E. 71.4 percent
Explanation:
.90 × .98 × .90 × .90 = .71441 rounded to 71.4 percent
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