Customers Typically Have Expectations for How Quickly They Should Receive

question 111

Essay

Customers typically have expectations for how quickly they should receive a product they have ordered.All other things held equal,they would prefer as short a wait as possible.However,different businesses perform different tasks between an order's placement and its shipment.
Required:
Discuss three measures that can help managers monitor their delivery processes.Include how each measure is different between two types of businesses.
Appendix,

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Definitions:

First-In, First-Out

A method for managing inventories and accounting, assuming that the earliest goods purchased are the first to be sold or used.

Inventory Costing

Methods used to value and account for inventory, including Specific Identification, FIFO (First-In, First-Out), LIFO (Last-In, First-Out), and Weighted Average.

Conversion Costs

The sum of direct labor and manufacturing overhead costs, representing the costs incurred to convert raw materials into finished products.

First-In, First-Out

A rephrased definition: An accounting method used to value inventory and calculate cost of goods sold, assuming the earliest goods purchased are the first to be sold.