eBook Problem 2-11 JIT and Co ntrol Langray, Ltd. produces 50,000 units each day

Question

eBook Problem 2-11 JIT and Co ntrol Langray, Ltd. produces 50,000 units each day, and the av is 200,000. The average annual inventory carrying cost is average work in process is $1,000,000. Required: 1. Determine the throughput time. umber of units in work in proces f inventory cost, and the cost of t 4 days 2. Compute the annual carrying costs 250000 3. If the same daily output can be achieved while reducing the work in process by 50%, determine the new throughput time. 2 days 4. What has happened to the velocity of production in part 3? Halved 5. Compute the annual carrying costs for part 3. 125000 6. What was the impact of the action in part 3 on the carrying costs? Reduced by 50% Check My Work Oe Icon Key Problem 2-11 e Question 8 of 13 tructor

Explanation / Answer

The answer number 4 seems to be incorrect. The velocity of production should have doubled. Rest of the answers are ok.

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