Question

5. Frosty Corporation manufactures and sells custom snowmobiles. From the time an order is placed until the time the snowmobile reaches the customer averages 50 days. This S0 days is spent as follows: Wait Time 10 days Move Time 5 days 15 days Process Time Queue Time 15 days Inspection Time 5 days What is Frosty's manufacturing cycle efficiency for its snowmobiles? a) 30 % b) 40 % c) 37.5 % d) 60 % e) None of the above $20,000 6. Amazon Corporation keeps careful track of the time required to fill orders because of their special 2-day "Prime" service. The times recorded for a particular order appear below: Wait Time 11.9 hours Move Time 3.5 hours Process Time 1.7 hours Queue Time 9.6 hours Inspection Time 00 The delivery cycle time was: 0.3 hours a) 3.5 hours b) 27 hours c) 13.1 hours d) 25 hours com 7. Which of the following statements is false? a) Profit center managers often are evaluated using return on investment or residual income measures b) An investment center is a business segment whose manager has control over cost, revenue, and investments in operating assets c) An example of a cost center is the human resources department of a corporation d) Decentralized organizations need responsibility accounting systems that link decision making authority of lower-level managers with accountability for outcomes he dislon

Answer 1

Solectin's (5) Given data, wait time - Todays more time - 5 days process time 15days Queue time - isdays Inspection time .. sdays. Time = process time value added - through put Time= more time t process time + Que tre time Inspection! 25+ 15 +15+5 = 40 days Manufacturing cycle efficiency (MCE)= - = value added Throughout tir To teso 37.5" option c is correct.

solutions .. Given data, wait time - 11-9 hours more time - 3.5 hours procese time - 17 hours Queue time - go hours Inspection time .0.3 hours Delivery cycle time = wait time + more time t process time + Queue time + Inspection time - 11.9 +3.5+ 7 +9-tto- = 27 hours. option B is correct.