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

question 22

Essay

Rintharamy Corporation's management reports that its average delivery cycle time is 25.2 days, its average throughput time is 7.6 days, its manufacturing cycle efficiency (MCE) is 0.25, its average move time is 0.9 day, and its average queue time is 4.0 days.
Required:
a. What is the wait time?
b. What is the process time?
c. What is the inspection time?

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Definitions:

Accounts Receivable

Money owed to a company by its customers for products or services already delivered but not yet paid for.

Service Revenue

Income earned by a company for providing services as opposed to selling physical products.

Book Value

The value of an asset according to its balance sheet account balance, calculated by subtracting the asset's accumulated depreciation from its purchase price.

Salvage Value

At the conclusion of its useful life, an asset's salvage value is the anticipated market price upon resale.