E15.31 LO 15.11 Customer response time Pavement Pounders (PP) manufactures a range of designer walking shoes, which it produces to order for major department stores and chains of shoe stores. On 5 March the sales department at PP received an order from shoe chain WalkOn for 5 000 of PP's well-known Glitter Dazzler walkers. PART 3 Information for managing resources The sales department at PP forwarded the order to its manufacturing department on 12 March. On receiving the order, the manufacturing department placed an order with its supplier of the requisite shoe materials. These materials were received by the manufacturing department on 29 March, but there was no spare capacity on the shoe pattern and cutting machines until 6 April, when PP commenced manufacturing the order. The order was completed on 17 April and delivered to the warehouse. The warehouse accumulated this order with others from WalkOn. WalkOn's logistics centre received the delivery of Dazzler walkers on 1 May. Required 1. What is the customer response time for the Dazzler walkers order, in days? 2. Estimate order receipt time, waiting time, production time, production lead (or cycle) time and delivery time for the Dazzler walkers order. 3. Suggest steps that PP might take to improve its customer response time.
E15.31 LO 15.11 Customer response time Pavement Pounders (PP) manufactures a range of designer walking shoes, which it produces to order for major department stores and chains of shoe stores. On 5 March the sales department at PP received an order from shoe chain WalkOn for 5 000 of PP's well-known Glitter Dazzler walkers. PART 3 Information for managing resources The sales department at PP forwarded the order to its manufacturing department on 12 March. On receiving the order, the manufacturing department placed an order with its supplier of the requisite shoe materials. These materials were received by the manufacturing department on 29 March, but there was no spare capacity on the shoe pattern and cutting machines until 6 April, when PP commenced manufacturing the order. The order was completed on 17 April and delivered to the warehouse. The warehouse accumulated this order with others from WalkOn. WalkOn's logistics centre received the delivery of Dazzler walkers on 1 May. Required 1. What is the customer response time for the Dazzler walkers order, in days? 2. Estimate order receipt time, waiting time, production time, production lead (or cycle) time and delivery time for the Dazzler walkers order. 3. Suggest steps that PP might take to improve its customer response time.
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter8: Budgeting For Planning And Control
Section: Chapter Questions
Problem 30E: Refer to Exercise 8.29. Suppose Gene determines that next years Sales Division activities include...
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