Question: On the average, a company has a work-in-process lead time of 10 weeks and annual cost of goods sold of $30 million. Assuming that the

On the average, a company has a work-in-process lead time of 10 weeks and annual cost of goods sold of $30 million. Assuming that the company works 50 weeks a year:

a. What is the dollar value of the work-in-process?

b. If the work-in-process could be reduced to 5 weeks and the annual cost of carrying inventory was 20% of the WIP inventory value, what would be the annual savings?

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