Question: On the average, a firm has an 8-week lead time for work-in-process, and annual cost of goods sold is $12 million. Assuming that the company

On the average, a firm has an 8-week lead time for work-in-process, and annual cost of goods sold is $12 million. Assuming that the company works 50 weeks a year:

a. What is the dollar value of the work-in-process?

b. If the lead time could be reduced to 6 weeks, what would be the reduction in WIP?

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