Cost Management: A Strategic Emphasis 5th Edition by David Stout, Edward Blocher, Gary Cokins

Exercise 5

A customer places an order on January 1, 2011. Ten days later that order is received by the manufacturing department. Fifteen days later, the order is put into production. Processing (manufacturing) time is 20 days for this order. The completed order was then shipped ten days later. For this order, what was the total customer response time (CRT)?

Step 1 of 2

Customer response time is actual time gap between the actual placement of order by customer and the time when they receive the goods as per order. The components of customer response time are receipt time, manufacturing lead time and delivery time.