Question: answer as soon as possible A part is produced in lots of 1,400 units. It is assembled from 2 components worth $70 total. The value

answer as soon as possible

answer as soon as possible A part is produced in

A part is produced in lots of 1,400 units. It is assembled from 2 components worth $70 total. The value added in produce tion (for labor and variable overhead) is $60 per unit, bring- ing total costs per completed unit to $130. The average lead time for the part is 8 weeks and annual demand is 3,600 units, based on 50 business weeks per year. a. How many units of the part are held on average, in cycle inventory? What is the dollar value of this inventory? b. How many units of the part are held, on average, in pipe- line inventory? What is the dollar value of this inventory? (Hint: Assume that the typical part in pipeline inventory is 50 percent completed. Thus, half the labor and variable overhead cost has been added, bringing the unit cost to $100, or $70 + $60>2)

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