Enter the total wait time and the total throughput time into the calculator to determine the delivery cycle time.

Delivery Cycle Time Formula

The following equation is used to calculate the Delivery Cycle Time.

DCT = WT + TT
• Where DCT is the delivery cycle time (days)
• WT is the average wait time (days)
• TT is the total throughput time (days)

To calculate the delivery cycle time, sum together the average wait time and the total throughput time.

What is a Delivery Cycle Time?

Definition:

A delivery cycle time is defined as the total amount of time it takes for a customer to receive an item once ordered.

How to Calculate Delivery Cycle Time?

Example Problem:

The following example outlines the steps and information needed to calculate Delivery Cycle Time.

First, determine the average throughput time. This is the total time it takes for the product to be produced and ready to ship from the manufacturer. In this example, this is 10 days.

Next, determine the total wait time. For this example, the wait time 5 days.

Finally, calculate the delivery cycle time using the formula above:

DCT = WT + TT

DCT = 10+5

DCT = 15 days

FAQ

What factors can affect the average wait time in delivery cycle time calculations?

The average wait time can be affected by various factors including supplier delays, transportation issues, inventory shortages, and processing times. External factors such as weather conditions and customs clearance for international shipments can also contribute to longer wait times.

How can businesses reduce their total throughput time to improve delivery cycle time?

Businesses can reduce their total throughput time by optimizing their production processes, improving supply chain management, adopting just-in-time inventory practices, and utilizing technology for better planning and coordination. Streamlining quality control and reducing bottlenecks in the production line can also significantly decrease throughput time.

Why is monitoring delivery cycle time important for businesses?

Monitoring delivery cycle time is crucial for businesses to ensure customer satisfaction, reduce inventory costs, and improve operational efficiency. By keeping track of delivery cycle time, businesses can identify areas for improvement in their supply chain and production processes, leading to faster delivery times, higher customer retention rates, and ultimately, increased profitability.