What is Delivery Time?

Delivery time relates to the amount of time a customer has to wait to receive their purchased bike.

Customers in some markets are willing to wait a short-while for delivery of the right product, while in other markets customers require immediately delivery. See Customer Preferences by Market Segment within the Market Information report. However, as manager of your company you should ideally ensure stock is always available to supply Retail Stores.

Which decisions affect Delivery Time?

Your job as manager(s) of your company is to ensure supply matches demand, meaning accurate sales forecasts, a complementary production decision, and sufficient factory capacity. Lost Sales are a good indicator supply is not matching demand.

Inefficiencies in the production process can also cause delays in delivery. This can be identified by a long Manufacturing Cycle Time (see the Manufacturing Responsiveness report). To rectify this you should review your Batch Size, Setup Time Reduction, Supplier Relations and Raw Materials Inventory decisions.

How do I track Delivery performance?

Delivery performance in MikesBikes Advanced is measured by the Delivery Index (0 being terrible, 1 being perfect). Previous and Current Delivery Indexes are listed on the Market Summary report.

Previous Deliver versus Current Delivery

Previous Delivery refers to the delivery performance for the previous period. It is shown because the simulation used this figure when calculating product demand for the current period. Your customers’ future delivery expectations are based on your past Delivery performance, not your current delivery performance.

Current Delivery refers to the delivery performance for the current period. This value will be used in the demand calculations for the year ahead.

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