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

On average, a company has a work-in-process (WIP) lead time of 10 weeks and the annual cost of goods sold of $30 million. The company works 50 weeks a year. If the WIP 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 in the carrying cost? dollars. The answer is an integer

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related General Management Questions!

1 . 4 On the average, a company has a work - in - process lead time of 1 0 weeks and annual cost of goods sold of $ 3 0 million. Assuming that the company works 5 0 weeks a year: What is the dollar...

On Average, a company has work in process lead time of 10 weeks and annual cost of goods sold is $12,000,000. Assume the company works 50 weeks per year. There are two parts to this assignment. Part...

i need help with these questions Gallucci's Distilleries generated annual revenue of $60 million in 2021 with variable costs of $30 million, fixed costs of $20 million, and net income of $10 million....

please help me to solve this 5 questions Question 1 a) If the cost of direct material is 50%, direct labor is 10%, and overhead is 25% of sales, What will be the improvement in profit if cost of...

Listen On average, a company has a 12-week production lead time and an annual cost of goods sold of $36 million Assuming the company works 50 weeks per year: a. What is the dollar value of the WIP?...

Part a. On average, a company has a 12-week production lead time and an annual cost of goods sold of $36 million. Astuming the company works 50 weeks per year: a. What is the dollar value of the WIP?...

On average, a firm has an 8 - week lead time for work - in - process ( WIP ) , and the annual cost of goods sold is $ 1 2 million. The company works 5 0 weeks a year. What is the dollar value of the...

On average, a company has a 12-week production lead time and an annual cost of goods sold of $36 million. Assuming the company works 50 weeks per year: A. What is the dollar value of the WIP? B. If...

Question 2 On average, a company has a 10-week production lead time and an annual cost of Goods sold of $26 million. Assuming the company works 45 weeks per year: a. What is the dollar value of the...

could you please answer these Yellow Press, Inc., buys paper in 1,500-pound rolls for printing. Annual demand is 2,000 rolls. The cost per roll is $625, and the annual holding cost is 28 percent of...

Write the rate law for the following reaction assuming each reaction follows an elementary rate law. (1) CH, CH + H (2) CH +0,-CH-CH (3) (CH,),COOC(CH,), C,H; + 2CH,COCH, (4) nCH CH (5)...

Example 3.19 used annual rainfall data for Albuquerque, New Mexico, to construct a relative frequency distribution and cumulative relative frequency plot. The National Climate Data Center also gave...

Inventory Cost Flow Assumption: FIFO, LIFO, Average Cost; Periodic & Perpetual Methods Inventory information for Moby Corporation disclosed the following information for the month of June: June 1...

Case Greenbuilders Pte Lid ("GPL") is a local construction company which specialises in providing bespoke Design and Build construction services for private residential homes that are designed to be...