On average, a firm has a 10 -week lead time for work-in-process, and annual cost of goods

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On average, a firm has a 10 -week lead time for work-in-process, and annual cost of goods sold is $10 million. Assuming that the firm operates 50 weeks per year:

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

b. If the lead time could be reduced to 7 weeks, what would be the reduction in WIP?

Related Book For answer-question

Fundamentals of Corporate Finance

ISBN: 978-0133400694

1st canadian edition

Authors: Jonathan Berk, Peter DeMarzo, Jarrad Harford, David A. Stangeland, Andras Marosi

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Posted Date: Dec 11, 2023 08:40 AM

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On average, a firm has a 10 -week lead time for work-in-process, and annual cost of goods

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a To calculate the value of the workinprocess We know that the l... View the full answer

Fundamentals of Corporate Finance

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