Terminator, Inc., manufactures a motorcycle part in lots of 150 units. The raw materials cost for the part is $160, and the value added in manufacturing 1 unit from its components is $280, for a total cost per completed unit of $440. The lead time to make the part is 3 weeks, and the annual demand is 3,800 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.)