A firm has redesigned Its production process so that it now takes 10 hours for a unit to be made. Using the old process, It took 15 hours to make a unit. The process makes one unit each hour, on average, and each unit is worth $1,500. What is the reduction in work-in-process value? Reduction in WIP

Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter5: Network Models
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Ch. 11 Q5
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Problem 11-5 (Static)
A firm has redesigned its production process so that it now takes 10 hours for a unit to be made. Using the old process, It took 15 hours
to make a unit. The process makes one unit each hour, on average, and each unit is worth $1,500.
What is the reduction in work-in-process value?
Reduction in WIP
Transcribed Image Text:es Problem 11-5 (Static) A firm has redesigned its production process so that it now takes 10 hours for a unit to be made. Using the old process, It took 15 hours to make a unit. The process makes one unit each hour, on average, and each unit is worth $1,500. What is the reduction in work-in-process value? Reduction in WIP
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ISBN:
9781337406659
Author:
WINSTON, Wayne L.
Publisher:
Cengage,