The formula to calculate the delivery cycle time is:
DCT=WT+TT
Where:
A delivery cycle time is defined as the total amount of time it takes for a customer to receive an item once ordered. It includes both the average wait time and the total throughput time, providing a comprehensive measure of the efficiency of the delivery process.
Let's assume the following values:
Using the formula:
DCT=5+10=15days
The delivery cycle time is 15 days.
Let's assume the following values:
Using the formula:
DCT=3+7=10days
The delivery cycle time is 10 days.