What is the reduction in inventory value

Assignment Help Operation Management

Reference no: EM131432783

A firm has redesigned its production process so that it now takes 8 minutes for a single widget to be made, from the beginning of the process to the end of the process. Using the old process, it took 15 minutes to make a single widget. If the production flow rate is 20 widgets per hour on average, and each widget is valued at $800, what is the reduction in inventory value (WIP) after redesigning the production process?

Reference no: EM131432783

Questions Cloud

A clothier makes coats and slacks : A clothier makes coats and slacks. The two resources required are wool cloth and labor. The clothier has 150 square yards of wool and 200 hours of labor available. Formulate a linear programming model for this problem. (I've got this part figured out..

Units employees customers processed : The following table shows data on the average number of customers processed by several bank service units each day. The hourly wage rate is $25, overhead rate is 1.0 times labor cost, and material cost is $5 per customer. Compute the labor productivi..

Change in the quantity and timing of orders for golf carts : Parts List for Lead Quantity Electric Golf Cart Time on Hand Electric golf cart 1 0 Top 1 40 Supports (4) 1 200 Cover 1 0 Base 1 20 Motor 2 300 Body 3 50 Frame 1 35 Controls 1 0 Wheel assemblies (4) 1 240 Seats (2) 2 120 Refer to problem 12. Assume t..

Contrast a selling versus a marketing philosophy : Contrast a selling versus a marketing philosophy. Describe the activities of an automobile dealer that practices a selling philosophy versus one that practices a marketing philosophy.

What is the reduction in inventory value : A firm has redesigned its production process so that it now takes 8 minutes for a single widget to be made, from the beginning of the process to the end of the process. Using the old process, it took 15 minutes to make a single widget. If the product..

Public figure to profess to complete change of viewpoint : Why do you think it is rare for a public figure to profess to a complete change of viewpoint? In conclusion, what does she say is the most significant predictor of student test scores? What recommendations does she make to remedy this problem?

Attributes of professional and technical presentations : What general rule is used to determine the length of the validation period for the time series data? What are the attributes of professional and technical presentations?

Diagonal highway between boulder and longmont : The Boulder County Highway Safety Department monitors speeding tickets issued on the Diagonal Highway between Boulder and Longmont. Speeding tickets issued on the Diagonal have averaged 12 per month. Which type of control chart should be used to moni..

Develop a material requirements plan : A firm that produces electric golf carts has just received an order for 200 carts, which must be ready for delivery at the start of week 8. Construct a product tree. Construct an assembly time chart. Develop a material requirements plan that will pro..

User Account

All Pages