NauticaB is a company that makes little boats. This company controls its production process by periodically taking a sample of 100 units from the production line. Each product is inspected for defective features. Control limits are developed using three standard deviations from the mean as the limit. During the last 16 samples taken, the proportion of defective items per sample was recorded as follows: 01 .02 01 .03 .02 01 .00 .02 .00 .01 .03 .02 .03 .02 .01 .00 The supply chain of Nautica has the following information: Supplier Factory Wholesale Retailer Inventory in days Accounts receivable 30 90 40 20 in days Accounts payable in days Purchasing unit 20 45 30 40 30 45 60 37 $ 5 $10 $20 $20 $25 $55 $55 $10 $ 70 $ 30 cost Added unit cost Sales unit price Ontime $70 $110 delivery (%) 85 95 75 95 * This is also the throughput time in days. Compute the cash-to-cash cycle time for each of the four entities separately. Based on this calculation, who is benefiting the most?
NauticaB is a company that makes little boats. This company controls its production process by periodically taking a sample of 100 units from the production line. Each product is inspected for defective features. Control limits are developed using three standard deviations from the mean as the limit. During the last 16 samples taken, the proportion of defective items per sample was recorded as follows: 01 .02 01 .03 .02 01 .00 .02 .00 .01 .03 .02 .03 .02 .01 .00 The supply chain of Nautica has the following information: Supplier Factory Wholesale Retailer Inventory in days Accounts receivable 30 90 40 20 in days Accounts payable in days Purchasing unit 20 45 30 40 30 45 60 37 $ 5 $10 $20 $20 $25 $55 $55 $10 $ 70 $ 30 cost Added unit cost Sales unit price Ontime $70 $110 delivery (%) 85 95 75 95 * This is also the throughput time in days. Compute the cash-to-cash cycle time for each of the four entities separately. Based on this calculation, who is benefiting the most?
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
Related questions
Question
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, operations-management and related others by exploring similar questions and additional content below.Recommended textbooks for you
Practical Management Science
Operations Management
ISBN:
9781337406659
Author:
WINSTON, Wayne L.
Publisher:
Cengage,
Operations Management
Operations Management
ISBN:
9781259667473
Author:
William J Stevenson
Publisher:
McGraw-Hill Education
Operations and Supply Chain Management (Mcgraw-hi…
Operations Management
ISBN:
9781259666100
Author:
F. Robert Jacobs, Richard B Chase
Publisher:
McGraw-Hill Education
Practical Management Science
Operations Management
ISBN:
9781337406659
Author:
WINSTON, Wayne L.
Publisher:
Cengage,
Operations Management
Operations Management
ISBN:
9781259667473
Author:
William J Stevenson
Publisher:
McGraw-Hill Education
Operations and Supply Chain Management (Mcgraw-hi…
Operations Management
ISBN:
9781259666100
Author:
F. Robert Jacobs, Richard B Chase
Publisher:
McGraw-Hill Education
Purchasing and Supply Chain Management
Operations Management
ISBN:
9781285869681
Author:
Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson
Publisher:
Cengage Learning
Production and Operations Analysis, Seventh Editi…
Operations Management
ISBN:
9781478623069
Author:
Steven Nahmias, Tava Lennon Olsen
Publisher:
Waveland Press, Inc.