Terminator, Inc., manufactures a motorcycle part in lots of 300 units. The raw materials cost for the part is $170, and the value added in manufacturing 1 unit from its components is $320, for a total cost per completed unit of $490. The lead time to make the part is 4 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? units. (Enter your response as an integer.)

Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter4: Linear Programming Models
Section: Chapter Questions
Problem 111P
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Terminator, Inc., manufactures a motorcycle part in lots of 300 units. The raw materials cost for the part is $170, and the
value added in manufacturing 1 unit from its components is $320, for a total cost per completed unit of $490. The lead
time to make the part is 4 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?
units. (Enter your response as an integer.)
Transcribed Image Text:Terminator, Inc., manufactures a motorcycle part in lots of 300 units. The raw materials cost for the part is $170, and the value added in manufacturing 1 unit from its components is $320, for a total cost per completed unit of $490. The lead time to make the part is 4 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? units. (Enter your response as an integer.)
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