Carts corporation is trying to determine how long it takes, Ask an Expert

Accounting

Carts Corporation is trying to determine how long it takes for one product to pass through the production process. The following information was gathered regarding how many days the product spent in various production activities:

Activity Number of Days

Inspection 5

Storage 6

Assembly 4

Handling 2

Painting 4

Packaging 1

c. Determine Carts’ manufacturing efficiency ratio.

d. If Carts implements a total quality management program and a just-in-time inventory system, What would be the change in Carts’ manufacturing efficiency ratio?

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