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Value-Stream Reporting with Inventory Decrease Shorts Manufacturing, Inc., has implemented lean manufacturing in its Kansas City plant as a pilot program. One of its value
Value-Stream Reporting with Inventory Decrease Shorts Manufacturing, Inc., has implemented lean manufacturing in its Kansas City plant as a pilot program. One of its value streams produces a family of small electric tools. The valuestream team managers were quite excited about the results, as some of their efforts to eliminate waste were proving to be effective. During the most recent three weeks, the following data pertaining to the electric tool value stream were collected: Week 1: Demand-90 units (a $40 Beginning inventory 10 units $20 ($5 materials and $15 conversion Production 90 units using $450 of material and S1350 of conversion cost Week 2 Demand 00 units (a $40 Beginning inventory 0 units (a $20 ($5 materials and $15 conversion) Production 90 units using $450 of material and S1350 of conversion cost Week 3 Demand 90 units (a S40 Beginning inventory 0 Production 100 units using $500 of material and $1,500 of conversion cost
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