Assume 50 working weeks per year. how many units of the, Ask an Expert

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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 compo- nents is $300, for a total cost per completed unit of $450. The lead time to make the part is 3 weeks, and the annual demand is 4,000 units. Assume 50 working weeks per year. How many units of the part are held, on average, as cycle inventory? What is its value?

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