Made-to-order delivery times. Production processes may be classified as make-to-stock processes or make-to-order MTO processes. Make-to-stock processes

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Made-to-order delivery times. Production processes may be classified as make-to-stock processes or make-to-order MTO processes. Make-to-stock processes are designed to produce a standardized product that can be sold to customers from the firm’s inventory. Make-to-order processes are designed to produce products according to customer specifications (Schroeder, Operations Management, 2008). In general, performance of make-to-order processes is measured by delivery time—the time from receipt of an order until the product is delivered to the customer. The accompanying data set is a sample of delivery times (in days) for a particular make-to-order firm last year. The delivery times marked by an asterisk are associated with customers who subsequently placed additional orders with the firm. 50* 64* 56* 43* 64* 82* 65* 49* 32* 63* 44* 71 54* 51* 102 49* 73* 50* 39* 86 33* 95 59* 51* 68 Concerned that they are losing potential repeat customers because of long delivery times, the management would like to establish a guideline for the maximum tolerable delivery time. Use a graphical method to help suggest a guideline. Explain your reasoning.

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Statistics For Business And Economics

ISBN: 9781292413396

14th Global Edition

Authors: James McClave, P. Benson, Terry Sincich

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