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A part is produced in lots of 1 , 0 0 0 units. It is assembled from 2 components worth $ 7 0 total. The

A part is produced in lots of 1,000 units. It is assembled from 2 components worth $70 total. The value added in
production (for labor and variable overhead) is $70 per unit, bringing total costs per completed unit to $140. The
average lead time for the part is 5 weeks and annual demand is 3,800 units, based on 50 business weeks per year.
a. How many units of the part are held, on average, in cycle inventory? 500 units. (Enter your response as
an integer.)
What is the dollar value of this inventory? $70000.(Enter your response as an integer.)
b. How many units of the part are held, on average, in pipeline inventory? units. (Enter your response as
an integer.)
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