Enormous Company and Petite Company Are Two of the Largest

question 83

Essay

Enormous Company and Petite Company are two of the largest mail order companies in the U.S. Given below is selected information for these two companies for 20X3 and 20X5. $\begin{array}{llll}&&\text { Enormous }&\text { Petite }\\\text { Customer orders } & 20 \times 3 & 2,300,000 & 2,700,000 \\& 20 \times 5 & 2,000,000 & 3,400,000 \\\text { Number of employees } & 20 \times 3 & 1,000 & 1,200 \\& 20 \times 5 & 1,200 & 1,400\end{array}$ Required:
a. Compute the 20X3 and 20X5 productivity measures in terms of customer orders per employee for Enormous Company and Petite Company.
b. Compare the change in productivity between 20X3 and 20X5 for Enormous Company and Petite Company. Do you note any problem areas?

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Definitions:

Ignores Costs

A term referring to the practice or scenario where financial expenditures or implications are not taken into consideration.

Supply and Demand Conditions

The economic model that determines the price of goods in a market, based on the availability of the goods (supply) and the desire for them (demand).

Initial Solution

The first proposed resolution or approach to solving a problem, often used as a starting point for further refinement in optimization problems.

Northwest Corner Allocation

A method used in operations research to solve transportation problems, starting allocations from the northwest corner of a cost matrix and working through to optimize transportation costs.