Question: . On average, a firm has a 6 week lead time for work-in-process, and annual cost of goods sold is $10 million. Assuming that the

. On average, a firm has a 6 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 4 weeks, what would be the reduction in WIP?

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!

For the distillation in Figure 9.23, calculate N min and the distribution of the nonkey components by the Fenske equation, using Figures 2.4 and 2.5 for K-values. C3 iCa nC4 iC5 nC nC6 kmol/h 2,500...

please show all work and explain how to do. thank u! 1. The cost of manufacturing (direct material and direct labor) is 70% of sales. Profit is 10% of sales. You should now be able to determine the...

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...

A firm has an average 8 week lead time for work-in-process, and annual cost of goods sold is $20 million. Assuming the firm operates 50 weeks per year and WIP = of final inventory value: a. What is...

On average, a firm has an 11-week production lead time and an annual cost of goods sold of $24 million. Assuming that the company works 50 weeks a year, what is the reduction in WIP If the firm could...

Its required to show work, ill give a thumbs up! A firm has an average 8-week lead time for work-in-process, and annual cost of goods sold is $10 million. Assuming the firm operates 50 weeks per year...

A firm has an average 1 2 - week lead time for work - in - process, and annual cost of goods sold is $ 1 0 million. Assuming the firm operates 5 0 weeks per year and WIP = 1 2 of final inventory...

1 . A firm has an average 1 2 - week lead time for work - in - process, and annual cost of goods sold is $ 1 0 million. Assuming the firm operates 5 0 weeks per year and WIP = ( 1 ) / ( 2 ) of final...

3. A firm has an average 8-week lead time for work-in-process, and annual cost of goods sold is $20 million. Assuming the firm operates 50 weeks per year and WIP-% of final inventory value: a. What...

here is a few questions about inventory. both pictures have same info but 2 questions House Max Builders constructs modular homes, and last year its cost of goods sold was $18.5 million. It operates...

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...

Hot air at 80C is blown over a 2-m x 4-m flat surface at 30C. If the convection heat transfer coefficient is 55 W/m2 C, determine the rate of heat transfer from the air to the plate, in kW.

The differential equation that describes the current i0 (t) in a network is di, (t) di,t) + 6 +8i, (t) = 0 dt? dt

Question 1 of 2 Which of the following is NOT a drawback of the liquidation of principal to produce survivor income? 1 . Surviving children may receive no inheritance. 2 . Capital may be depleted...

As the manager of Smith Construction, you need to make a decision on the number of homes to build in a new residential area where you are the only builder. Unfortunately, you must build the homes...