Question

A manufacturing company operates 320 days a year with an annual demand for component Cof 43,200 units. The fabrication department at the company is able to produce 900 units per day and send them over to assembly while production is in progress.1.If assembly sends a work order for 11,200 units of component Cto fabrication, how long is the order receipt period

Answer 1

Answer: 12.44 days

Step-by-step explanation:

The Order Receipt period refers to the amount of time the company will take to complete production on the work order.

Formula is:

= Work order quantity / Production rate per day

= 11,200 / 900

= 12.44 days