Listen On average, a company has a 12-week production lead time and an annual cost of goods sold of $36 million Assuming the company works 50 weeks per year: a. What is the dollar value of the WIP? (2 Mark) b. If the lead time could be reduced to 5 weeks and the annual cost of carrying inventory was 20% of the inventory value, what would be the annual savings? (3 Marks) Part b A company is using a carrier to deliver goods to a major customer. The annual demand for the product is $ 3650000, Assume 365 working days. The average transit time is 14 days. Another carrier is offering the same services however the transit time is now 10 days. Calculate a Transit inventory with the old cartier (1.5 mark) b. Transit inventory with the new camer (1.5 mark) c Saving if any it the holding costs are 35%. (2 marks) Paragraph ** V M Worksheets