Question: A firm has a 10 week lead time for work-in-process (WIP) inventory valued at $500,000. If the lead time could be reduced by 2 weeks

A firm has a 10 week lead time for work-in-process (WIP) inventory valued at $500,000. If the lead time could be reduced by 2 weeks and the annual cost of carrying inventory was 10% of the WIP inventory value, what would the annual savings be?

Select one:

$1,000

$5,000

$10,000

$50,000

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