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 components is $280, for a total cost per completed unit of $430. The lead time to make the part is 3 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.) What is its value? $ (Enter your response as an integer.) b. How many units of the part are held, on average, as pipeline inventory? units. (Enter your response as an integer.) What is its value? $ (Enter your response as an integer.)

Iguana, Inc., manufactures bamboo picture frames that sell for $25 each. Each frame requires 4 linear feet of bamboo, which costs $2.00 per foot. Each frame takes approximately 30 minutes to build, and the labor rate averages $12.00 per hour. Iguana has the following inventory policies:     Ending finished goods inventory should be 40 percent of next month’s sales. Ending direct materials inventory should be 30 percent of next month’s production. Expected unit sales (frames) for the upcoming months follow:      March 275 April 250 May 300 June 400 July 375 August 425   Variable manufacturing overhead is incurred at a rate of $0.30 per unit produced. Annual fixed manufacturing overhead is estimated to be $7,200 ($600 per month) for expected production of 4,000 units for the year. Selling and administrative expenses are estimated at $650 per month plus $0.60 per unit sold.Iguana, Inc., had $10,800 cash on hand on April 1. Of its sales, 80 percent is in cash. Of the…

Global GPS industries assembles its GPS systems with the following costs. Each or requires one computer system and 4 batteries. Computer systems cost $140 each, and Batteries are $2.50 each. Global is able to reliably obtain computers as needed and does not maintain them in inventory. However, batteries are stocked in inventory sufficient to produce 20% of the following month's expected production. Planned production is as follows: January February March April 24,000 systems 39,750 systems 23,850 systems 25,000 systems BB batter Compute No end/No Required: Prepare a direct material purchasing plan for January, February, and March based on the above facts.

Suppose a company has 1,000 units of a raw material part on hand. If 750 of these units are routed into production, should the company place an order to stock up on more of these parts? (Show calculations). Determine the economic order quantity (EOQ) for this part, assuming the following:The company plans to use 10,000 units during the coming year.The company orders this part in lots of 1,000 units, and each order placed carries a processing cost of $2.50.Each unit of inventory carries an annual holding cost of $6.40.