Terminator, Inc., manufactures a motorcycle part in lots of 150 units. The raw materials cost for the part is $150, and the value added in manufacturing 1 unit from its components is $320, for a total cost per completed unit of $470. The lead time to make the part is 2 weeks, and the annual demand is 3,800 units. Assume 50 working weeks per year. a. How many units of the part are held, on average, as cycle inventory? __________________ units. (Enter your response as an integer.) What is its value? $___________________ (Enter your response as an integer.) b. How many units of the part are held, on average, as pipeline inventory? ________________ units. (Enter your response as an integer.) What is its value? $__________________________ (Enter your response as an integer.)
Terminator, Inc., manufactures a motorcycle part in lots of 150 units. The raw materials cost for the part is $150, and the value added in manufacturing 1 unit from its components is $320, for a total cost per completed unit of $470. The lead time to make the part is 2 weeks, and the annual demand is 3,800 units. Assume 50 working weeks per year. a. How many units of the part are held, on average, as cycle inventory? __________________ units. (Enter your response as an integer.) What is its value? $___________________ (Enter your response as an integer.) b. How many units of the part are held, on average, as pipeline inventory? ________________ units. (Enter your response as an integer.) What is its value? $__________________________ (Enter your response as an integer.)
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
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Question 5
Terminator, Inc., manufactures a motorcycle part in lots of
150
units. The raw materials cost for the part is
$150,
and the value added in manufacturing 1 unit from its components is
$320,
for a total cost per completed unit of
$470.
The lead time to make the part is
2
weeks, and the annual demand is
3,800
units. Assume 50 working weeks per year.a. How many units of the part are held, on average, as cycle inventory?
__________________
units. (Enter your response as an integer.)What is its value?
$___________________
(Enter your response as an integer.)b. How many units of the part are held, on average, as pipeline inventory?
________________
units. (Enter your response as an integer.)What is its value?
$__________________________
(Enter your response as an integer.)Expert Solution
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