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 workinprocess lead time of weeks and annual cost of goods sold of $ million. Assuming that the company works weeks a year and days a week:
a What is the dollar value of the workinprocess? b If the workinprocess could be reduced to weeks and the annual cost of carrying inventory was of the WIP inventory value, what would be the annual savings?
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