On the average, a company has a work-in-process lead time of 10 weeks and annual cost of
Question:
On the average, a company has a work-in-process lead time of 10 weeks and annual cost of goods sold of $30 million. Assuming that the company works 50 weeks a year:
a. What is the dollar value of the work-in-process?
b. If the work-in-process could be reduced to 5 weeks and the annual cost of carrying inventory was 20% of the WIP inventory value, what would be the annual savings?
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a Weekly cost of goods sold 30000000 600000 50 Value of 10 ...View the full answer
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Related Book For 
Introduction To Materials Management
ISBN: 978-9386873248
8th edition
Authors: Arnold J. R. Tony, Gatewood Ann K., M. Clive Lloyd N. Chapman Stephen
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