XYZ Cosmetics,Inc Compute Total Delivery Cycle Time for Each Week and Evaluate

question 52

Multiple Choice

XYZ Cosmetics,Inc.,has developed a set of nonfinancial measures to evaluate on-time product delivery performance for one of its best-selling cosmetics.The following data have been generated for the past four weeks: $\begin{array}{llll}& \text { Purchase } & \text { Production } & \\& \text { Order } & \text { Cycle } & \text { Delivery } \\\text { Week } & \text { Lead Time } & \text { Time } & \text { Time }\\1 & 2.4 \text { days } & 3.5 \text { days } & 4.0 \text { days } \\2 & 2.3 \text { days } & 3.4 \text { days } & 3.6 \text { days } \\3 & 2.4 \text { days } & 3.3 \text { days } & 3.4 \text { days } \\4 & 2.2 \text { days } & 3.1 \text { days } & 3.7 \text { days }\end{array}$

Compute total delivery cycle time for each week and evaluate the product delivery performance.Which area still needs management's attention?

• A) Purchase order lead time
• B) Production cycle time
• C) Delivery time
• D) None, all have improved over the past four weeks.

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Definitions:

Target Firm

In mergers and acquisitions, the company that is being considered or has been chosen for a takeover by another company.

NPV

Net Present Value; a financial metric that calculates the difference between the present value of cash inflows and the present value of cash outflows over a period of time.

Shares Outstanding

Refers to the total number of shares issued by a corporation that are currently owned by investors, including restricted shares owned by company insiders.

Market Price

Market price is the current price at which an asset or service can be bought or sold in a marketplace.