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3. Identify all costs, other than variable costs, for the trade show distribution strategy. Categorize these costs as investments and fixed costs (per trade show and for fiscal 2005).

Research two (2) manufacturing or two (2) service companies that manage inventory and complete this assignment.

Compute the projected profit for the order quantities suggested by the management team under three scenarios: worst case in which sales = 10,000 units, most likely case in which sales = 20,000 units, and best case in which sales = 30,000 units.

In order to break even, the minimal quantity of cars to sell at the average retail price $102,500 (($109,000+$96,000)/2) for the first year is

1. a. The simulation indicates that 584 is the optimum stocking quantity. Daily profit at this stocking quantity is $331.4346.

One of specialty’s managers felt that the profit potential was so great that the order quantity should have a 70% chance of meeting demand and only a 30% chance of any stock-outs. What quantity would be ordered under this policy, and what is the projected profit under the three sales scenarios?

10. If 12,500 units are produced, what is the total amount of fixed manufacturing cost incurred to support this level of production?

This answer can be done in tabular form as well, with the interest on inventory appearing as a new column. If one order is placed a year, the average inventory is 1,000 kegs, worth $40,000, with annual interest charges (1.5 x 12 = 18%) of $7,200. Other interest costs are calculated in a similar fashion, adjusted for average inventory.

* Forecasting is an impartial strategic ingredient that will ensure apt base for reputable planning. Our forecast is always the first step in developing plans in running the business along with our future plans of growth strategies. With this tool, we are able to anticipate our sales within reason that then can allow for us to control our costs in conjunction with inventory which will then help us to enhance our customer service. Sales forecasting is a vital strategic tactic in our company’s methodology.

The customers, wholesalers and retailers may order in large quantities with the expectation that they will receive a greater allocation of products that are in short supply. The impact on the supply chain is significant as the forecasted demand is greatly, and unrealistically, increased with these inflated orders. Eventually orders disappear and cancellations pour in, making it impossible for the manufacturer to determine the real demand for its products

A. Assuming the number of hours Anna Sheen will spend developing the profile section will = 4; Ralph Armentrout’s optimal stocking quantity is 516, as portrayed in the table below:

To determine the causes of the variances, price variances and quantity variances can be calculated separately for each aspect of bicycle construction. Price variance and quantity variance are the two parts that make up the total variance between the flexible budget and the actual budget, which we found to be $259,187. To find price variance, the actual quantity of each part used must be held constant while price per part varies. This will show how the total cost is impacted by the difference in part price. Therefore this

For our warehouse, we needed to establish a reorder point. If our reorder point was too low the warehouse will see that we reached our benchmark and call the factory to shut down. To ensure that this case would not happen, we set the reorder

To compute the optimal order quantity of each wine we firstly needed to compute the unit cost per bottle and the salvage value of each. From the description of the case we could easily identify that the unit cost of each bottle was 50% (gross margin) of the price plus the 1,25€ per bottle of the transportation costs. With this we computed the unitary cost of each type of wine.

Northcutt Bikes is a bike manufacturer and a service provider of bike parts to the many retail businesses that sell Northcutt bikes. Northcutt Bikes has a warehouse that is 95% utilized however they have an order fulfillment rate of less than 80%. This has caused a loss of revenue due to orders being cancelled when needed parts are not in stock. To resolve the problem, we looked at 3 alternatives including establishing pooling groups within the same geographic region, establishing a continuous review inventory management system or staying the course. Our recommendation is to establish a continuous review inventory system that will reduce unnecessary inventory, increase needed inventory and improve service levels.