A firm cost of good sold averages P2,000,000 per month, and it keeps an inventory equal to 50% of its monthly cost of good sold on hand at all times. Using a 365 -day year, what is its inventory conversion period?
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A: Following are the calculations: EOQ =2*Annual Demand*Ordering CostHolding Cost =2*125000*4009.50…
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A: Hence, the EOQ is 1,121 units.
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A: EOQ = sqrt (2DS/H) Annual Holding cost = EOQ/2 x H Annual ordering cost = D/EOQ x S Reorder…
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A: Inventory turnover is one of the important ways to calculate the turnover ratio of the inventory and…
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A: We have Average annual sales (D) = 600 tires Standard deviation (σ) = 1 tire Ordering cost (O) = $40…
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A: 9). The average number of boxes (if we ignore the safety stock) is simply the EOQ divided by 2…
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A: Annual demand (D) = 2520 units Holding cost (H) = $1.55 Ordering cost (S) = $19.00 Lead time(L) = 2…
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A: EOQ=2DSH=2×21,000×1253=1,750,000=1,322.88 Hence, the EOQ is 1,322.88 units.
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A: given, manufacturing = 2400 units carrying cost = $60 per year ordering cost = $250 safety stock = 8…
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A: Here, we have annual demand based on average number of boxes per day=500*250=125000 Order cost =400…
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A: The aforementioned data is classified on the basis of A-B-C categories as follows:
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A: For the given statement, The thrid option is the correct answer. Order point = 1100 units
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A: Inventory average = 465 pounds Average hamburger sold = 4800 Cost of hamburger = 3
Q: inventory management
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Q: he manager thinks that the safety stock of 30 wheels is too low and ask for your advices. What is…
A: THE ANSWER IS AS BELOW:
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Q: 19. What would the average number of boxes be if the safety stock from Part A was kept and the EOQ…
A: Below is the solution:-
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A: Given, Annual demand, d = 2480 brackets. Holding cost, h = $1.45 per bracket Ordering cost, o =…
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A firm cost of good sold averages P2,000,000 per month, and it keeps an inventory equal to 50% of its monthly cost of good sold on hand at all times. Using a 365 -day year, what is its inventory conversion period?
Standford Packing had sales of P3.2 million and a gross profit margin of 35% last year. If Standford inventory averaged P0.4 million last year, What was the length of the average age of inventory?
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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.A computer company’s yearly inventory cost is 40 percent (which accounts for thecost of capital for financing the inventory, warehouse space, and the cost of obsolescence). Last year, the company had $400 million in inventory and cost of goods sold of$26 billion. What is the company’s total inventory cost for the year (in $ million)?A restaurant has annual sales of $420,000, an average inventory of $6000, and an annualcost of goods sold of $264,000. What are the restaurant’s days-of-supply of inventory?(Assume 365 days per year.)
- It’s your responsibility, as the new head of the automotive section of Nichols Department Store, to ensure that reorder quantities for the various items have been correctly established. You decide to test one item and choose Michelin tires, XW size 185 x 14 BSW. A perpetual inventory system has been used, so you examine this, as well as other records, and come up with the following data. Cost per tire $55 each Holding cost 15 percent of tire cost per year Demand 1,180 per year Ordering cost $ 36 per order Standard deviation of daily demand 7 tires Delivery lead time 8 days Because customers generally do not wait for tires but go elsewhere, you decide on a service probability of 95 percent. Assume the…Arrow Distributing Corp. likes to track inventory by using weeks of supply as well as by inventory turnover. Arrow Distributing Corp. Net Revenue $15,630 Cost of sales $12,190 Inventory $1,090 Total assets $8,770 a) What is its weeks of supply? weeks (round your response to two decimal places). b) What is Arrow's inventory turnover? times per year (round your response to two decimal places). c) Suppose a manufacturer has an inventory turnover of 13.5 times per year. Arrow's supply chain performance relative to the manufacturer's, as measured by inventory turnover, isBoreki Enterprises has the following 10 items ininventory. Theodore Boreki asks you, a recent OM graduate, todivide these items into ABC classifications.ITEM ANNUAL DEMAND COST/UNITA2 3,000 $ 50B8 4,000 12C7 1,500 45D1 6,000 10E9 1,000 20F3 500 500G2 300 1,500H2 600 20I5 1,750 10J8 2,500 5a) Develop an ABC classification system for the 10 items.b) How can Boreki use this information?c) Boreki reviews the classification and then places item A2 intothe A category. Why might he do so?
- A restaurant has annual sales of $420,000, an average inventory of $6000, and an annualcost of goods sold of $264,000. What is the restaurant’s monthly inventory turns?Use the information below for the following questions: Knights Corporation also needs to determine the proper reorder point and safety stock level. Annual Demand = 15000 gallons Lead Time = 15 days Standard deviation of lead time = 3 days Standard deviation of demand = 10 gallons Service Level = 96% (Z score of 1.75 or 1.76) Open days per year = 360 days 1. What is the reorder point? (keep two decimal places through your work, round your final answer up to the next highest whole number) 2.What is the safety stock? (keep two decimal places through your work, round your final answer up to the next highest whole number) 3. If the service level increased to 99% (Z score of 2.32 or 2.33), what would be the new safety stock? (keep two decimal places through your work, round your final answer up to the next highest whole number)Inventory Management Williams & Sons last year reported sales of $39 million, cost of goods sold (COGS) of $30 million, and an inventory turnover ratio of 5. The company is now adopting a new inventory system. If the new system is able to reduce the firm's inventory level and increase the firm's inventory turnover ratio to 6 while maintaining the same level of sales and COGS, how much cash will be freed up? Do not round intermediate calculations. Enter your answer in dollars. For example, an answer of $1.23 million should be entered as 1,230,000,000. Round your answer to the nearest dollar.
- Last year, the retailer’s weekly variance of demand was 200 units. The variance of orders was 500, 600, 750, and 1,350 units for the retailer, wholesaler, distributor, and manufacturer, respectively.a) Calculate the bullwhip measure for the retailer.b) Calculate the bullwhip measure for the wholesaler.c) Calculate the bullwhip measure for the distributor.d) Calculate the bullwhip measure for the manufacturer.e) Which firm appears to be contributing the most to the bull-whip effect in this supplychain?21- Which one of the following represent FIFO method of inventory evaluation? a. Old items remain in inventory b. Old merchandise is sold first c. New merchandise is sold first d. Average number of goods are soldRetailers Warehouse (RW) is an independent supplier of household items todepartment stores. RW attempts to stock enough items for a 98 percent serviceprobability.A stainless steel knife set is one item it stocks. Demand (2,400 sets peryear) is relatively stable over the entire year. Whenever new stock isordered, a buyer must assure that numbers are correct for stock on handand then phone in a new order. The total cost involved to place an order isabout $5. RW figures that holding inventory in stock and paying forinterest on borrowed capital, insurance, and so on adds up to about $4holding cost per unit per year.Analysis of the past data shows that the standard deviation of demandfrom retailers is about four units per day for a 365-day year. Lead time toget the order is seven days.a. What is the economic order quantity?b. What is the reorder point?