Final answer:
Customer order cycle time is not solely the manufacturing and delivery time to the retailer; it includes the entire duration from when the order is placed to when the product is received by the customer.
Step-by-step explanation:
The statement that customer order cycle time is the time it takes to manufacture a product and deliver it to the retailer is false. The customer order cycle time typically starts when a customer places an order and ends when they receive the product. It includes not only the manufacturing time but also other key processes such as order processing, transportation, and delivery.
For instance, within Richard's Furniture Company, if they deliver furniture continuously from 10 a.m. to 2 p.m., and assuming deliveries are uniform over this time, the customer order cycle time would encompass the period from when the customer places the order until the delivery is completed, not just the manufacturing part.
The assumption from the model that a single customer arrives at a time or that the flow of customers is consistent throughout the day can lead to inaccuracies in calculating the order cycle time due to multiple customers arriving at once or fluctuating demand during certain hours.