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OL Harrison Hidustries produces 4,000 lunch boxes each day. The average number of units in work in process is 12,000, having an average cost of
OL Harrison Hidustries produces 4,000 lunch boxes each day. The average number of units in work in process is 12,000, having an average cost of $60,000. The annual carrying costs related to inventory are 10%. Consultants have determined that the work in process could be reduced by as much as a third by rearranging the territoor. What would the reduction in annual carrying costs be if Harrison is able to implement the nument changes marks)
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