Terminator, Inc., manufactures a motorcycle part in lots of 250 units. The raw materials cost for the part is $150, and the value added in manufacturing 1 unit from its components is $280, for a total cost per completed unit of $430. The lead time to make the part is 3 weeks, and the annual demand is 4,200 units. Assume 50 working weeks per year. a. How many units of the part are held, on average, as cycle inventory? nothing 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? nothing 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 250 units. The raw materials cost for the part is $150, and the value added in manufacturing 1 unit from its components is $280, for a total cost per completed unit of $430. The lead time to make the part is 3 weeks, and the annual demand is 4,200 units. Assume 50 working weeks per year. a. How many units of the part are held, on average, as cycle inventory? nothing 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? nothing 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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Terminator, Inc., manufactures a motorcycle part in lots of
250 units. The raw materials cost for the part is $150, and the value added in manufacturing 1 unit from its components is $280, for a total cost per completed unit of $430. The lead time to make the part is 3 weeks, and the annual demand is 4,200 units. Assume 50 working weeks per year.
a. How many units of the part are held, on average, as cycle inventory?
nothing units. (Enter your response as an integer.)
What is its value? $_______.
(Enter your response as an integer.)
(Enter your response as an integer.)
b. How many units of the part are held, on average, as pipeline inventory?
nothing units. (Enter your response as an integer.)
What is its value?
$________________
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