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A part is produced in lots of 1 , 0 0 0 units. It is assembled from 2 components worth $ 4 0 total. The
A part is produced in lots of units. It is assembled from components worth $ total. The value added in productionfor labor and variable overhead is $ per unit, bringing total costs per completed unit to $ The average lead time for the part is weeks and annual demand is units based on business weeks per year.
Part
a How many units of the part are held, on average, in cycle inventory?
units. Enter your response as an integer.
Part
What is the dollar value of this inventory? $
Enter your response as an integer.
Part
b How many units of the part are held, on average, in pipeline inventory?
units. Enter your response as an integer.
Part
What is the dollar value of this inventory? Hint: Assume that the typical part in pipeline inventory is percent completed. Thus, half the labor and variable overhead cost has been added, bringing the unit cost to $ or $ $
The dollar value of the inventory is
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