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NauticaB is a company that makes little boats. This company controls its production process by periodically taking a sample of 100 units from the production line. Each product is inspected for defective features. Control limits are developed using three standard deviations from the mean as the limit. During the last 16 samples taken, the proportion of defective items per sample was recorded as follows: 01 .02 01 .03 .02 01 .00 .02 .00 .01 .03 .02 .03 .02 .01 .00 The supply chain of Nautica has the following information: Supplier Factory Wholesale Retailer Inventory in days Accounts receivable 30 90 40 20 in days Accounts payable in days Purchasing unit 20 45 30 40 30 45 60 37 $ 5 $10 $20 $20 $25 $55 $55 $10 $ 70 $ 30 cost Added unit cost Sales unit price Ontime $70 $110 delivery (%) 85 95 75 95 * This is also the throughput time in days. Compute the cash-to-cash cycle time for each of the four entities separately. Based on this calculation, who is benefiting the most?

NauticaB is a company that makes little boats. This company controls its production process by periodically taking a sample of 100 units from the production line. Each product is inspected for defective features. Control limits are developed using three standard deviations from the mean as the limit. During the last 16 samples taken, the proportion of defective items per sample was recorded as follows: 01 .02 01 .03 .02 01 .00 .02 .00 .01 .03 .02 .03 .02 .01 .00 The supply chain of Nautica has the following information: Supplier Factory Wholesale Retailer Inventory in days Accounts receivable 30 90 40 20 in days Accounts payable in days Purchasing unit 20 45 30 40 30 45 60 37 $ 5 $10 $20 $20 $25 $55 $55 $10 $ 70 $ 30 cost Added unit cost Sales unit price Ontime $70 $110 delivery (%) 85 95 75 95 * This is also the throughput time in days. Compute the cash-to-cash cycle time for each of the four entities separately. Based on this calculation, who is benefiting the most?

Practical Management Science
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
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NauticaB is a company that makes little boats. This company controls its production process by periodically taking a sample of 100 units from the production line. Each product is inspected for defective features. Control limits are developed using three standard deviations from the mean as the limit. During the last 16 samples taken, the proportion of defective items per sample was recorded as follows: .01 .02 .01 .03 .02 .01 .00 .02 .00 .01 .03 .02 .03 02 .01 .00 The supply chain of Nautica has the following information: Supplier Factory Wholesale Retailer Inventory in days* Accounts 30 90 40 20 receivable in days 20 45 30 40 Accounts payable in days Purchasing unit cost Added unit cost Sales unit price On-time 30 45 60 37 $ 5 $10 $20 $20 $25 $55 $55 $10 $70 $ 70 $ 30 $110 delivery (%) 85 95 75 95 * This is also the throughput time in days. Compute the cash-to-cash cycle time for each of the four entities separately. Based on this calculation, who is benefiting the most?
Transcribed Image Text:NauticaB is a company that makes little boats. This company controls its production process by periodically taking a sample of 100 units from the production line. Each product is inspected for defective features. Control limits are developed using three standard deviations from the mean as the limit. During the last 16 samples taken, the proportion of defective items per sample was recorded as follows: .01 .02 .01 .03 .02 .01 .00 .02 .00 .01 .03 .02 .03 02 .01 .00 The supply chain of Nautica has the following information: Supplier Factory Wholesale Retailer Inventory in days* Accounts 30 90 40 20 receivable in days 20 45 30 40 Accounts payable in days Purchasing unit cost Added unit cost Sales unit price On-time 30 45 60 37 $ 5 $10 $20 $20 $25 $55 $55 $10 $70 $ 70 $ 30 $110 delivery (%) 85 95 75 95 * This is also the throughput time in days. Compute the cash-to-cash cycle time for each of the four entities separately. Based on this calculation, who is benefiting the most?
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