Question

ACME Hardware wants your company to make 8,000 lawn mowers and wants the mowers in 45...

ACME Hardware wants your company to make 8,000 lawn mowers and wants the mowers in 45 days. You can make 180/day working 24/7.

  1. What is your total lead time to fill an order this large?
  2. Will you be able to fill the order?
Math   Statistics-And-Probability   
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Answer #1

Lead time is defined as the amount of time taken between ordering something and receiving it.

Here,ACME Hardware wants your company to make 8,000 lawn mowers and wants the mowers in 45 days.

But your company can make 180/day working 24/7.

Lawn mowers your company can make in 45 days = (180*45)=8100 ,which is greater than required 8000 mowers.

So, Yes your company can fill the order.

The only thing that remains is to calculate the lead time.

Time required to fill an order of 8000 lawn mowers working 24/7 = (8000/18) days =44.44444 days.

Hence, the lead time is 44.44444 days, which implies greater than 44 days

So 45 days is chosen as the lead time

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