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

question 33

Essay

Loehr Corporation's management reports that its average delivery cycle time is 14.0 days, its average throughput time is 6.3 days, its manufacturing cycle efficiency (MCE) is 0.27, its average move time is 0.1 day, and its average queue time is 3.9 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:

Accrued Liability

Liabilities recognized on the books before they’re paid for, representing expenses that have been incurred but not yet settled in cash.

Current Liabilities

Short-term financial obligations of a company that are due to be paid within one year, including accounts payable, short-term loans, and accrued expenses.

Long-Term

Refers to assets, investments, or obligations that are expected to last or be in place for more than one year.

Interest Expense

The cost incurred by an entity for borrowed funds, usually shown as an expense on the income statement.