Question

Superfast Motors manufactures and sells a wide variety of motors to industrial customers. All motors cost about the same and are assembled on the same line. Switching over from assembling one motor to another requires about two hours. Superfast assembles motors to be stocked in a distribution center from where they are shipped as orders arrive. HP is the highest- selling motor (in terms of units sold) and LP the lowest selling.
a. Will the average cycle inventory of HP motors be:
• Higher than the cycle inventory of LP motors
• Lower than the cycle inventory of LP motors
• Same as the cycle inventory of LP motors?
b. Will the average time spent by an HP motor in inventory be:
• Higher than the time spent by an LP motor
• Lower than the time spent by an LP motor
• Same as the time spent by an LP motor?


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  • CreatedNovember 06, 2015
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