A part is produced in lots of $1,000$ units. It is assembled from $2$ components worth $$$$40$ total. The value added in production$($for labor and variable$$ overhead$)$ is $$$ $50$per$$ unit, bringing total costs per completed unit to $$$$90.$ The average lead time for the part is $7$ weeks and annual demand is $4,100$units$,$ based on $50$ business weeks per year.

Part $2$

a$.$ How many units of the part are$$ held, on$$ average, in cycle$$ inventory?

$$

$500$ units. $$

Part $3$

What is the dollar value of this$$ inventory?

$$

$45000$

b$.$ How many units of the part are$$ held, on$$ average, in pipeline$$ inventory?