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Lead Time$$Analysis

Fuzzy Pals Inc. manufactures toy stuffed animals. The direct labor time required to cut, sew, and stuff a toy is $8$ minutes per unit. The company makes two types of stuffed toys$$a lion and a bear. The lion is assembled in lot sizes of $40$ units per batch, while the bear is assembled in lot sizes of $10$ units per batch. Since each product has direct labor time of $8$ minutes per unit, management has determined that the lead time for each product is $8$ minutes.

a$.$Lead time includes $\_\_\_,\_\_\_,$ and $\_\_\_.$

a$.$ Value$-$added time, wait time and other non$-$value$-$added time.

b$.$ Production time, packing time and value$-$added time.

c$.$ Idle time, direct labor hours, and wait time.

d$.$ None of the above.

abcd

b$.$A toy manufacturing unit produces two types of products and the labor time for each product is $10$ minutes. The batch size of product A is $40$ units and batch size of product B is $8$ units. The company considers the lead time of the products to be equal to the labor hours. Is this decision correct? Support your answer by selecting the reason.

a$.$ Yes

b$.$ No

ab

Reason:

a$.$ Lead time of the product includes value$-$added time, idle time and other non$-$value$-$added time.

b$.$ Labor time and lead time adds value to the product.

c$.$ Lead time and labor time are one and the same with different names.

d$.$ None of the above.

abcd