Calculate the average orders picked

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Reference no: EM133989569

Question

A third-party logistics (3PL) service provider receives an average of 2200 orders per day at its warehouse.

The warehouse engages 12 workers to pick the orders. Each picker works 8 hours to pick these orders per day. After undergoing an on-the-job training, the warehouse reported that only 4% of orders have to be returned and re-picked again before dispatching. The return rate before the training was implemented was 8%.

The company takes great effort in setting and adhering to its warehouse KPI of in-full delivery rate at 97%

Calculate the average orders picked per hour before and after the workers has been trained. The return and re-pick orders will be counted as new orders. Each returned order requires an additional 0.2 hours to re-pick. What is the percentage increase in average orders picked per hour for this warehouse?

To Successfully dispatch these orders, the cost per order dispatched is $10 before the OJT and $7 after training. Assume the training cost is $4000. What is the ROI of this training program? Besides worker training, suggest two other ways to reduce the cost per order dispatched.

Reference no: EM133989569

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