9. Diorio Corporation keeps careful track of the time required to fill orders. The times recorded for a particular order appear below: Hours Move time Wait time Queue time Process time 2.7 21.1 5.3 1.4 Inspection time 0.1 The delivery cycle time was: A. 8 hours B. 29.1 hours C. 2.7 hours D. 30.6 hours

Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
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Chapter3: Cost Behavior
Section: Chapter Questions
Problem 28E
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9. Diorio Corporation keeps careful track of the time required to fill orders. The times
recorded for a particular order appear below:
Hours
Move time
2.7
Wait time
21.1
|Queue time
Process time
5.3
1.4
Inspection time
0.1
The delivery cycle time was:
A. 8 hours
B. 29.1 hours
C. 2.7 hours
D. 30.6 hours
Transcribed Image Text:9. Diorio Corporation keeps careful track of the time required to fill orders. The times recorded for a particular order appear below: Hours Move time 2.7 Wait time 21.1 |Queue time Process time 5.3 1.4 Inspection time 0.1 The delivery cycle time was: A. 8 hours B. 29.1 hours C. 2.7 hours D. 30.6 hours
Expert Solution
Step 1

Delivery cycle time is the span between the acceptance of an order to the delivery of the item to the customer. The business has to determine the delivery time taken for each individual order to control unusual long-time spending in the process. 

 

 
 
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