Question

Management of Mittel Rhein AG of Köln, Germany, would like to reduce the amount of time between when a customer places an order and when the order is shipped. For the first quarter of operations during the current year, the following data were reported: Inspection time 0.3 days, Wait time (from order to start of production) 14.0 days, Process time 2.7 days, Move time 1.0 days, Queue time 5.0 days. What is the total lead time for order fulfillment?

Answer 1

The total lead time for order fulfillment at Mittel Rhein AG is the sum of inspection, wait, process, move, and queue times, which amounts to 23.0 days.

Step-by-step explanation:

The total lead time for order fulfillment is calculated by adding each of the reported times involved in the process. According to the data provided by Mittel Rhein AG, the following times are added:

• Inspection time: 0.3 days
• Wait time: 14.0 days
• Process time: 2.7 days
• Move time: 1.0 day
• Queue time: 5.0 days

By summing these values, we get:

0.3 + 14.0 + 2.7 + 1.0 + 5.0 = 23.0 days

Therefore, the total lead time for order fulfillment at Mittel Rhein AG is 23.0 days.