Question: On the average, a company has a work - in - process lead time of 1 0 weeks and annual cost of goods sold of

On the average, a company has a work-in-process lead time of 10 weeks and annual cost of goods sold of $32 million. Assuming that the company works 48 weeks a year and 5 days a week:
a) What is the dollar value of the work-in-process? b) If the work-in-process could be reduced to 6 weeks and the annual cost of carrying inventory was 25% of the WIP inventory value, what would be the annual savings?

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