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' destination 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.What is the best estimate of its perfect order performance?
A)90 percent
B)60 percent
C)0 percent
D)66 percent

Question

Quizplus · Accepted Answer

The best estimate of the perfect order performance would be the multiplication of all the percentages, which would be 0.9 * 0.9 * 0.9 * 0.9 = 0.6561 or approximately 66 percent. Therefore, the best choice is D, 66 percent.

A Firm Has Found That It Provides a 90 Percent