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Question 25 2.5 pts ABC Company electroplates a part for automobiles in lots of 300 units. Annual demand for this electroplated part is 4,000 units.
Question 25 2.5 pts ABC Company electroplates a part for automobiles in lots of 300 units. Annual demand for this electroplated part is 4,000 units. ABC Company buys its raw material (i.e., the part to be electroplated) in lot size of 400 units from its supplier. The unit cost of the raw material component) purchased by ABC Company is $100. The transit lead time to get the required component from its supplier is 4 weeks. The value added in manufacturing (i.e., by electroplating) each part is $200. This results in the total value of an electroplated unit to be $300. The production lead time to electroplate a part is 3 weeks. Assume 50 working weeks per year. Which one of the following is closest to the value of the average cycle inventory of these electroplated parts? O $30,000 O $45,000 $40,000 O $60,000 ABC Company electroplates a part for automobiles in lots of 300 units. Annual demand for this electroplated part is 4,000 units. ABC Company buys its raw material (i.e., the part to be electroplated) in lot size of 400 units from its supplier. The unit cost of the raw material (component) purchased by ABC Company is $100. The transit lead time to get the required component from its supplier is 4 weeks. The value added in manufacturing (i.e., by electroplating) each part is $200. This results in the total value of an electroplated unit to be $300. The production lead time to electroplate a part is 3 weeks. Assume 50 working weeks per year. Which one of the following is closest to the value of the average work-in-progress pipeline inventory during electroplating? $72,000 O $64,000 $48,000 $96,000
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