You work for Orinoco Inc., a retail rm that provides online delivery from
one of four domestic hubs (Chicago, Denver, St. Louis, and Memphis). For the
past year, your rm has been using two delivery companies, National Express
(NatEx), and Divided Wrapping Network (DWN), to deliver packages from
these hubs. The two delivery companies have o ered incentives to your company
in return for agreeing to be their exclusive delivery company for the next 2 years.
The incentive packages o ered by the delivery companies are similar. You are
a business analyst at Orinoco and have been tasked with deciding, based on
relative performance, which delivery company will be awarded the exclusive
contract.
One of the concerns that Orinoco has is timely delivery. If packages are
consistently late, there is a good chance that customers become less con dent in
Orinoco's products. Orinoco is also concerned about the weight of the packages,
as the delivery companies price according to package weight and distance to
delivery. Data from the past year are contained in the spreadsheet delivery
data.xls. The spreadsheet contains data on the delivery of individual packages
with information on
whether you used NatEx or DWN,
the hub from which the package was delivered,
whether the package was on time or late, and
the weight of the package.
Recommend one shipping company to be the exclusive delivery company for
Orinoco in a convincing report for the Board of Directors, detailing the reasons
behind your recommendation.