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Postal service

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Postal service

by gmatwar13 » Sat Oct 27, 2012 7:33 am
From 2004 to 2005, Unlimited Postal Service had the highest on-time overnight delivery rate of the six major delivery companies in the country. From 2005 to 2006, however, Unlimited Postal Service had the lowest on-time overnight delivery rate of the six major delivery companies. The on-time overnight delivery ranking of the other five companies relative to each other remained unchanged.

Which of the following, if true, would most contribute to an explanation of the facts above?

a) In early 2005, Unlimited Postal Service stopped taking overnight deliveries after 1:00 PM to ensure that the deliveries would be made according to schedule.
b) In a drastic cost-cutting measure, Unlimited Postal Service laid off 10 percent of its employees in early 2005.
c) Unlimited Postal Service implemented a new electronic package tracking system in early 2005 in order to improve delivery speed and efficiency.
d) In response to cuts to their retirement benefits, Unlimited Postal Service's delivery personnel went on a company-wide strike for all of February 2005.
e) Although all six delivery companies try to keep their overnight deliveries on schedule, increased security measures at many airports increased delays in deliveries originating in the cities those airports serve.

I am confused between two close options... Not able to narrow down between b and d
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by anuprajan5 » Sat Oct 27, 2012 8:01 am
Hi,

I would go with option B

My reasoning being that due to the layoff, that impacted the whole process for the whole year. Whereas in option D, it was one particular month in that year where there was a problem. Hence it should have an effect, but reasonably smaller one than the one in option B
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by ice_rush » Sat Oct 27, 2012 10:21 am
i don't think either B or D is correct. What is the source of the problem?
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by gmatwar13 » Sat Oct 27, 2012 10:29 am
Its veritas.. what makes you feel none of the options are incorrect..
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by ice_rush » Sat Oct 27, 2012 11:28 am
Actually i initially did not see the 'ALL'(All of February 2005) in choice D...i thought it was just referring to a strike in the month of February. So MAYBE a case can be made for choice D - Apparently the one month strike brought down the 12 month average for the overnight delivery. There are a couple of big assumptions at play here. First, we are assuming that a large percentage of delivery personnel participated in the strike. If the number is too small, how will can it move our 12 month average to the point where we drop down 6 positions??

Another assumption is that throughout the year approximately equal number (or at least more in the month of Feb, since the strike in Feb brought down the overall Average SIGNIFICANTLY) of late nigh shipments were made through out the year.

B is definitely out because the 10% work force cut could have been employees that the UPS just did not need.

Anyway I am still iffy about this question.


Do you have the official explanation?
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by gmatwar13 » Sun Oct 28, 2012 9:15 am
OA is infact D. and the reasoning also on the same line that 10% fired employee may not be directly related. But not very convinced that 10% of lay off can be irrelevant. If we assume that way then in D we can say only 2% of business is done in the month of february... gmat might like option D.. so just remembering the scenario
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