2. The inventory manager of Daraz hopes to achieve a better allocation of inventory control efforts by adopting an A-B-C approach to inventory control. Given the monthly usages in the following table, classify the items in A, B, and C categories to Taka usage Item X1 X2 X3 Х4 X5 X6 X7 X8 Usage 150 70 140 270 200 400 700 650 Unit 755 890 1625 210 410 60 30 Cost 25

2. The inventory manager of Daraz hopes to achieve a better allocation of inventory control efforts by adopting an A-B-C approach to inventory control. Given the monthly usages in the following table, classify the items in A, B, and C categories to Taka usage Item X1 X2 X3 Х4 X5 X6 X7 X8 Usage 150 70 140 270 200 400 700 650 Unit 755 890 1625 210 410 60 30 Cost 25

Name: 2. The inventory manager of Daraz hopes to achieve a better allocatio
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Description: 2. The inventory manager of Daraz hopes to achieve a better allocation of inventory controlefforts by adopting an A-B-C approach to inventory control. Given the monthly usages in thefollowing table, classify the items in A, B, and C categories to Ta

Purchasing and Supply Chain Management

6th Edition

ISBN:9781285869681

Author:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson

Publisher:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson

Chapter16: Lean Supply Chain Management

Section: Chapter Questions

Problem 10DQ: The chapter presented various approaches for the control of inventory investment. Discuss three...

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The chapter presented various approaches for the control of inventory investment. Discuss three additional approaches not included that might involve supply chain managers.
The following information relates to Unique Ltd for the year 2020: Annual Demand 408,375 units Annual cost of Holding £1.50 Annual cost of placing an order £ 500Required:(ii) Calculate the average inventory
For many firms, inventory usage is not uniformthroughout the year but instead follows some seasonal pattern. Can the EOQ model be used in thissituation? If so, how?
Inventory Management Basic EOQ Webber Tools sells power washers and is open for business 320 days a year. It costs the store $3750 each time it places an order with the manufacturer for the washers. The annual cost of carrying a washer in inventory is $400. The manager uses the Basic EOQ Model and forecasts an annual demand for the washers of 1200 units. How long is the order cycle time? Now assume the manager does not use the EOQ model. Instead, the manager has been ordering 125 washers at a time. How much money will be saved in annual inventory costs if the company switches to the EOQ (assume no stockouts)?
weekly demand for hamleys (a famous toy brand) at a toy store is normally disrtibuted with a mean of 250 and a standrd devaiton of 150.Ther toy store is opened 7 days a week.The toy store owner continoulsy monitors the inventory .Hamleys takes 2 weeks to fill an order with a standard devaiton of 4 days. 1] how much inventory should the sotre carry at the reorder point. 2] how much inventory would that be at the reorder point if the cycle service was increased to 98%?
Xemex has collected the following inventory data for the six items that it stocks: ITEM CODE UNIT COST ($) ANNUAL DEMAND (UNITS) ORDERING COST ($) CARRYING COST AS A PERCENTAGE OF UNIT COST 1 10.60 600 40 20 2 11.00 450 30 25 3 2.25 500 50 15 4 150.00 560 40 15 5 4.00 540 35 16 6 4.10 490 40 17 Lynn Robinson, Xemex’s inventory manager, does not feel that all of the items can be controlled. What ordered quantities do you recommend for which inventory product(s)?
Genesis Company is a wholesaler. It purchases 60,000 units of Product X per month for sale to retailers. The cost of placing an order is P100. The cost of holding one unit of inventory for one year is P4. Note: Kindly input your answer with comma.Example: 10,000 Required: a. Compute the economic order quantity. b. How many orders would be placed under the EOQ policy? c. Compute the annual ordering cost for the EOQ. d. Compute the annual carrying cost for the EOQ. e. Compute the total inventory-related cost at the EOQ.
Fisk Corporation is trying to improve its inventory control system and has installed an online computer at its retail stores. Fisk anticipates sales of 112, 500 units per year, an ordering cost of $3 per order, and carrying costs of $1.20 per unit. a. What is the economic ordering quantity? b. How many orders will be placed during the year? c. What will the average inventory be? d. What is the total cost of ordering and carrying inventory?
Joe Henry's machine shop uses 2,460 brackets during the course of a year. These brackets are purchased from a supplier 90 miles away. The following information is known about the brackets: Annual demand 2,460 Holding cost per bracket per year $ 1.65 Order cost per order $20.00 Lead time 22 days Working days per year 250 a) What is the EOQ? b) What is the average inventory if the EOQ is used? What would be the annual inventory holding cost? c) Given the EOQ, how many orders would be made each year? What would be the annual order cost? d) Given the EOQ, what is the total annual cost of managing (ordering and holding) the inventory? e) What is the time between orders? f) What is the reorder point (ROP)?
Petromax Enterprises uses a continuous review inventorycontrol system for one of its SKUs. The following informationis available on the item. The firm operates 50 weeks in a year.Demand = 50,000 units>yearOrdering cost = $35>orderHolding cost = $2>unit>yearAverage lead time = 3 weeksStandard deviation of weekly demand = 125 unitsa. What is the economic order quantity for this item?b. If Petromax wants to provide a 90 percent cycle-servicelevel, what should be the safety stock and the reorder point?
In the past, Taylor Industries has used a fixed−time period inventory system that involved taking a complete inventory count of all items each month. However, increasing labor costs are forcing Taylor Industries to examine alternative ways to reduce the amount of labor involved in inventory stockrooms, yet without increasing other costs, such as shortage costs. Here is a random sample of 20 of Taylor's items. ITEMNUMBER Annual Usage Item Number 1 $ 2,100 11 $ 14,000 2 13,000 12 1,100 3 2,800 13 44,000 4 52,300 14 10,800 5 10,500 15 1,800 6 1,300 16 11,100 7 2,600 17 4,700 8 11,900 18 63,700 9 5,800 19 4,100 10 16,100 20 3,500 a. Classify each item in inventory using an ABC plan.
The efficiency of an inventory system is often measuredby the turnover ratio. The turnover ratio (TR) is defined byTR a Does a high turnover ratio indicate an efficient in-ventory system? b If the EOQ model is being used, determine TR interms of K, D, h, and q.c Suppose D is increased. Show that TR will also beincreased.