Graphic Methods for Presenting Facts
Though there are not so many orders of large size as of small size, the small numbers of large orders nevertheless carry many more packages than the large numbers of small orders. The executive is, of course, interested in revenue and, for revenue purposes, as mentioned above, all packages may be considered of the same size. Revenue obviously depends upon the number of packages handled, rather than on the number of orders handled. Curve "C", then, shows at a glance that the small number of large orders are of much greater interest to the financial manager than the large number of small orders.
Fig. 157 shows that during the ten-days test period there were no orders in this particular class of work which exceeded two hundred packages. Curves "D" and "C", though interesting, do not show all
186 GRAPHIC METHODS
the information which is desirable from the standpoint of management. In order to show up the facts more clearly, curves "A" and "B" are plotted from the same data as curves "D" and "C" respectively. Curve "A" is plotted on a cumulative basis by the same general method used for Fig. 150 and Fig. 151. The total number of orders for the whole test period is first obtained, and then the cumulative number adding up to any class-limit line on the horizontal scale of the chart is plotted as a percentage of the total number of orders. Curve "A" joins the zero line at 200, showing that none of the orders was larger than 200 packages. We can see instantly that, because of the large number of small orders, only 22 per cent of all the orders handled were larger than twenty-five pieces per order. Only 13 per cent of all the orders handled exceeded fifty pieces per order. Also, by reading from the vertical scale opposite the figure for 50 per cent, we can see at once that only half of all the orders handled carried more than twelve packages.