An internal audit conducted by CDW

70 views 8:42 am 0 Comments March 23, 2023

Additional Information: An internal audit conducted by CDW uncovered the following information about internal processing at the fulfillment center. 1. CDW charges the costume rental in the following manner: a. One costume in an order: $12 per day, and thus $120 for a 10-day rental. b. Two costumes in an order: $18 per day, and thus $180 for a 10-day rental. 2. CDW hires 30 workers to inspect the returned costumes. On average, each worker can inspect 15 costumes per day, and their wage is $100/day. Based on the capacity, the average flow time in the inspection station is 0.5 days. 3. General Laundry takes 0.5 days to perform basic cleaning of a returned “good” costume. 4. Costumes identified as damaged need to wait before they are sent to Laundry Expert due to batching. On average, there are 200 damaged costumes waiting to be sent to Laundry Expert. 5. Laundry Expert takes an average of 2.5 days to repair and clean damaged costumes. The cleaned costumes also need to wait before shipping back to CDW due to batch delivery, and there are 200 such costumes at Laundry Expert waiting to be sent back. 6. The time to ship costumes to/from General Laundry is negligible, but it takes one day to ship costumes to/from Laundry Expert after batching. 7. There is no shipping cost associated with sending costumes to/from General Laundry and Laundry Expert.