11) How do some companies evaluate their response time improvement efforts?

12) How do manufacturing cycle times affect revenue and costs?

13) How do companies calculate inventory carrying costs?

14) Customer response time is an example of a time-related customer measure.

15) The manager at Middle Plantation Manufacturing needs to evaluate the response time improvement efforts. The manager reported the following information:

**Middle Plantation Manufacturing**

Value-added manufacturing time15 minutes

Manufacturing cycle time60 minutes

Required

Compute the manufacturing cycle efficiency (MCE) at Middle Plantation Manufacturing.

A) 25 %

B) 30 %

C) 35 %

D) 45 %

E) 75 %

16) Monique’s Gas-n-Go is considered to have a variable demand. The daily demand ranges from 240-300 customers per day, and they each purchase an average of four items. The average daily demand is 270 customers. The convenience store currently operates 12 hours each day and each order takes approximately 2 minutes.

Required

(a) Compute the average waiting time in minutes; (b) compute the cycle time for an order; and, (c) If Monique increased the hours that the store is open per day to 18 hours, how would that effect the average waiting time?

A) 3 minutes / (b) 4 minutes/(c) waiting time will decrease by 1.2 minutes

B) 1 minute / (b) 3 minutes/(c) Waiting time will increase by 1 minute

C) 3 minutes / (b) 5 minutes/(c) Waiting time will decrease by 1 minute

D) 5 minutes / (b) 4 minutes/(c) Waiting time will increase by 1.2 minutes.

E) 2 minutes / (b) 3 minutes/(c) Waiting time will not change.

17) The tool department at a large manufacturing corporation provides tools to factory employees on demand. The tool department has a variable demand. According to the manager, the demand ranges from 200-400 tools per day, with an average of 300 each day. Lila, the tool department manager, works 8 hours daily, five days weekly. Each order is for one tool and each tool takes Lila 1 minute to retrieve and notate in the log.

Required: (a) Calculate the average waiting time in minutes, and (b) the cycle time for each order. (c) Management is considering expanding Lila’s duties to include logging and retrieving precision tools also. She anticipates that there would be an average of 13 precision tool requests per day, each precision tool order would take 3 minutes to complete.

Required

How would this change in Lila’s duties affect the average wait time?

A) 1 minute; (b) 2.3 minutes; (c) It will increase wait time by 0.53 minutes.

B) 0.83 minutes; (b) 3.83 minutes; (c) It will increase wait time by 0.65 minutes.

C) 2.36 minutes; (b) 3.48 minutes; (c) It will increase wait time by 2.76 minutes.

D) 1.5 minutes; (b) 3.2 minutes; (c) It will decrease wait time by 1.1 minutes.

E) 4 minutes; (b) 5.2 minutes; (c) It will increase wait time by 5.3 minutes.

18) Bridgeview salon has a variable demand. The daily demand ranges from 150-190 customers a day with an average of 5 services purchased. The average daily demand is 170 customers. The salon operates 12 hours each day, and each service takes an average of 4 minutes. (a) Calculate the average waiting time in minutes, and (b) the cycle time for a service order. (c) Bridgeview management is considering extending the hours of the salon to 15 hour days, what affect will this change have on average waiting times?

A) 34 minutes; (b) 38 minutes; (c) The average wait time would decrease to 6.2 minutes.

B) 28 minutes; (b) 33 minutes; (c) The average waiting time would not change.

C) 24 minutes; (b) 29 minutes; (c) The average waiting time would decrease by 7 minutes.

D) 30 minutes; (b) 33 minutes; (c) The average waiting time would increase by 4 minutes.

E) 22 minutes; (b) 25 minutes; (c) There is not enough data to answer this question.

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