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

question 11

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: $\begin{array}{llll}&\text { Purcliase } & \text { Production }& \\&\text { Order } & \text { Cycle }& \text { Delivery }\\\text { Week } & \text { Lead Time } & \text { Time } & \text { Time } \\1 & 2.4 \text { days } & 3.5 \text { days } & 4.0 \text { days } \\2 & 2.3 \text { days } & 3.4 \text { days } & 3.6 \text { days } \\3 & 2.4 \text { days } & 3.3 \text { days } & 3.4 \text { days } \\4 & 2.2 \text { days } & 3.1 \text { days } & 3.7 \text { days }\end{array}$
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.

---

Definitions:

Fixed Prices

Prices that do not change in response to market conditions.

Corporate Taxes

Government levies placed on the earnings or profits of businesses.

Economic Environment

The total of economic factors, such as employment, income distribution, and investment opportunities, that influence the behavior of consumers and businesses.

Smoot-Hawley

Refers to the Smoot-Hawley Tariff Act of 1930, which raised U.S. import tariffs on thousands of goods, leading to significant trade reductions worldwide.