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31 May, 15:49

The length of time it takes to produce a unit of output from the time raw materials are received until the good is delivered to finished goods inventory is called

a. velocity.

b. cycle time.

c. manufacturing cycle efficiency.

d. theoretical cycle time.

e. theoretical MCE.

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Answers (1)
  1. 31 May, 15:56
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    Answer: Cycle time

    Explanation: In simple words, cycle time refers to the total time period taken by an organisation to move a unit from its beginning process to the end process.

    The beginning process starts from the purchase of raw materials for the production and it ends with the transfer of finished output to the customer.

    Investors evaluate cycle time to evaluate the operational efficiency of a manufacturing firm and how safe it is to invest in the money in such firm. Also a firm having low cycle time will have more security over its liquidity.
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