Business, 14.03.2020 01:27, mahaleyrenee1195

A part is produced in lots of 1,000 units. It is assembled from 2 components worth $50 total.

The value added in production (for labor and variable overhead) is $60 per unit, bringing total costs per completed unit to $110.

The average lead time for the part is 6 weeks and annual demand is 3,800 units, based on 50 business weeks per year.

1.1 What is the Average Cycle Inventory? (The units of the parts held, on average, in cycle inventory)

1.2. What is the Pipeline Inventory? (The units of the part held, on average, in pipeline inventory)

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A part is produced in lots of 1,000 units. It is assembled from 2 components worth $50 total.
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