Average delay?

System
System Posts: 100,534 🤖 Admin 🤖
edited 10:08AM in AAT student discussion
Hi<BR>Can anyone help me with this one. How do you work out average time a contract has been delayed? <BR><BR>Good luck to everyone for the December exams!<BR><BR>

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  • System
    System Posts: 100,534 🤖 Admin 🤖
    Average delay?

    If the company has orders for 390,000 units, but could only make 360,000 units in a year. The backlog will be 30,000 units (390,000 - 360,000).<BR><BR>To work out the average delay you need to do: backlog volume divide it by sales volume and multiply by 12 (if your calculating the delay in months)<BR><BR>So 30,000 / 360,000 x 12 = Avg Delay in completing an order is 1 month.<BR><BR>Hope this helps!

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