Reference no: EM133446310

Question

Dale Computer Company accepts orders from customers for computers online through its website and configures and builds them to order at one of its distribution centers from components it orders from its various suppliers in the United States and overseas. It is continually retaining new suppliers as its computer models change and as new computing technologies are developed. It promises its customers that when an order is placed the customer will receive it quickly, typically within a week, which in turn requires that Dale's suppliers provide component parts as quickly as they are demanded. Normally Dale sets a target of 4 days for a supplier to deliver parts once they are ordered, and Dale uses SPC charts (see Chapter 3) to monitor a supplier's delivery performance once this target value has been achieved. Dale has learned from past experiences working with many suppliers that it takes some time for new suppliers to improve their production and delivery processes to consistently meet Dale's target delivery time. It normally takes a supplier about 15 days to deliver Dale's first order. Determine approximately how many orders it will take a new supplier that has a 65% learning curve to be able to meet Dale's orders within the specified target time.