Wolk Corporation Is a Highly Automated Manufacturing Firm What Is the Production (Manufacturing) Lead Time for This Order

question 70

Multiple Choice

Wolk Corporation is a highly automated manufacturing firm. The vice president of finance has decided that traditional standards are inappropriate for performance measures in an automated environment. Labor for this company is insignificant in terms of the total cost of production and tends to be fixed, material quality is considered more important than minimizing material cost, and customer satisfaction is the number one priority. As a result, delivery performance measures have been chosen to evaluate performance. The following information is considered typical of the time involved to complete customer orders. $\begin{array}{lr}\text { From time order is placed to time order received by manufacturing } & 10.0 \text { days } \\\text { From time order is received by manufacturing to time production begins } & 5.0 \text { days } \\\text { Inspection time } & 1.5 \text { days } \\\text { Process (manufacturing) time } & 3.0 \text { days } \\\text { Move time } & 2.5 \text { days }\end{array}$ What is the production (manufacturing) lead time for this order?

• A) 7 days.
• B) 8 days.
• C) 15 days.
• D) 18 days.
• E) 19 days.

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Definitions:

System Reliability

The probability of a system or component performing its required functions under stated conditions for a specified period of time.

Parallel Components

Components that are designed to work alongside each other within a system, often to increase redundancy and reliability.

Cost Curves

Graphical representations that show how the cost of producing a good or service changes with changes in the production volume.

Full Cost

The total amount of expenses incurred to produce a good or service, including direct, indirect, fixed, and variable costs.