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Extreme Wreaths, Inc. makes wreaths in batches of 16 at a time. The cutting process takes 8 minutes per wreath, the assembly process is 12 minutes per wreath, and the decorating process time is 12 minutes per wreath. It takes 4 minutes to move the wreaths from the cutting process to the assembly process. The cutting and assembly process are done at the same time, but only one wreath can be decorated at a time.
(a) Compute the value added, nonvalue added, and the total lead time of the wreath process.
(b) Compute the value added ratio. Round to the nearest decimal.
(c) Assume the standard value added ratio for this type of process is 15%. Briefly comment on your results.
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