Cost Accounting (15th Edition)

Published by Prentice Hall
ISBN 10: 0133428702
ISBN 13: 978-0-13342-870-4

Chapter 19 - Spoilage, Rework, and Scrap - Assignment Material - Questions - Page 754: 19-12

Answer

There can be a tradeoff between customer-response time and on-time performance. Optimizing one may lead to compromises in the other, as efforts to improve on-time performance can result in higher costs and potential waste, while prioritizing customer-response time may risk on-time performance if disruptions occur. Balancing both aspects is essential to satisfy customers while maintaining operational efficiency.

Work Step by Step

There can be a tradeoff between customer-response time and on-time performance. Optimizing one may lead to compromises in the other, as efforts to improve on-time performance can result in higher costs and potential waste, while prioritizing customer-response time may risk on-time performance if disruptions occur. Balancing both aspects is essential to satisfy customers while maintaining operational efficiency.
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