Sweety Tea (ST) manufactures a range of designer T-shirts, which it produces to order for major department

Question:

Sweety Tea (ST) manufactures a range of designer T-shirts, which it produces to order for major department stores. On to March the sales department at ST received an order from retail company, Legend Outwear, for 5000 glitter Ts. The sales department at ST forwarded the order to its manufacturing department on 14 March. On receiving the order, the manufacturing department placed an order with its supplier of glitter fabric. This fabric was received by the manufacturing department on 28 March, but there was no spare capacity on the T-shirt pattern and cutting machines until 5 April, when ST commenced the order. The order was completed on 16 April and delivered to the warehouse. The warehouse accumulated this order with others from Legend Outwear. The ST delivery, including the glitter Ts, was received by Legend Outwear on 30 April.

Required:

1. What is the customer response time for the glitter Ts order, in days?

2. Estimate order receipt time, waiting time, production time, production lead (or cycle) time and delivery time for the glitter Ts order.

3. Suggest steps that ST might take to improve its customer response time.

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question

Management Accounting

ISBN: 9781760421144

7th Edition

Authors: Kim Langfield Smith, Helen Thorne, David Alan Smith, Ronald W. Hilton

Question Posted: