ON the average, a company has a work in process lead time of 15 weeks and annual cost of goods sold of $ 50 million Assuming that the company works 40 weeks a year What is the dollar value of the work in process If the work in process could be reduced to 10 weeks and the annual cost of carrying inventory was 30 of the WIP inventory value, what would be the annual savings

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Question: ON the average, a company has a work-in-process lead time of 15 weeks and annual cost of goods sold of $ 50 million. Assuming that

ON the average, a company has a work-in-process lead time of 15 weeks and annual cost of goods sold of $ 50 million. Assuming that the company works 40 weeks a year:

What is the dollar value of the work-in -process?
If the work-in-process could be reduced to 10 weeks and the annual cost of carrying inventory was 30% of the WIP inventory value, what would be the annual savings?

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