McPhee Company manufactures rugs in the cutting and assembly process. Rugs are manufactured in 70-rug batch sizes. The cutting t
ime is 14 minutes per rug. The assembly time is 24 minutes per rug. It takes 18 minutes to move a batch of rugs from cutting to assembly. What is the value-added lead time?
Value-added refers to a process or phase in a system that turns raw materials or work in progress into much more desirable goods and services for downstream consumers.
