Schurz Corporation's Management Reports That Its Average Delivery Cycle Time

question 54

Essay

Schurz Corporation's management reports that its average delivery cycle time is 27 days, its average throughput time is 10.0 days, its manufacturing cycle efficiency (MCE) is 0.32, its average move time is 0.3 day, and its average queue time is 6.0 days.Required:a. What is the wait time? (Round your answer to 1 decimal place.)b. What is the process time? (Round your answer to 1 decimal place.)c. What is the inspection time? (Round your intermediate calculations and final answer to 1 decimal place.)

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Definitions:

Lump-sum Purchase

The acquisition of an asset or multiple assets in a single transaction for a single amount, instead of making payments over time.

Straight-line Method

A method of calculating depreciation and amortization by evenly distributing the cost of an asset over its useful life.

Salvage Value

The projected value at which an asset can be sold after its period of usefulness, utilized in the computation of depreciation costs.

Depreciated

The reduction in value of an asset over time due to wear and tear, age, or obsolescence, commonly used in accounting to allocate the cost of an asset over its useful life.