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Marge Inoferror, materials manager at Inoferror Enterprises, has determined her company's financial information as follows: Annual revenue: $1,000,000 Annual COGS: $760,000 - including Labor ($40,000),
Marge Inoferror, materials manager at Inoferror Enterprises, has determined her company's financial information as follows: Annual revenue: $1,000,000 Annual COGS: $760,000 - including Labor ($40,000), Material ($520,000), and Overhead ($200,000) costs Average inventory (encompassing all different types of inventory): $800,000 Order lead time (LT): 5 weeks Order frequency: monthly (i.e., once a month) And we assume there are 52 working weeks a year. Note: For full credit on each question below, please show your work - round each answer to the nearest whole number as needed - using a blank paper sheet and upload the worksheet back onto Canvas. a. What is the current lot/batch size (Q), expressed in $ amount? (1 pt.) b. What is average cycle inventory level (also in $ amount) (1 pt.)? c. What is the pipeline inventory level (also in $ amount) (1 pt.)
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