Boreki Enterprise has the following 10 items in inventory. Theodore Boreki asks you, a recent OM graduate, to divide these items into ABC classifications. Fill in the blanks and then answer the following questions. (Round dollar volume to the nearest whole number and percentage of dollar volume to two decimal places.) % of Total Dollar Volume Dollar Item Annual Demand Cost/Unit Volume A2 250 20 B8 C7 12 45 48,000 67,500 5.56 7.81 4000 1500 D1 150 2000 E9 1000 20 20,000 2.31 F3 60 150 34.72 200 600 1500 20 300,000 12,000 G2 H2 1.39 15 300 300 J8 2500 12,500 1.45

Boreki Enterprise has the following 10 items in inventory. Theodore Boreki asks you, a recent OM graduate, to divide these items into ABC classifications. Fill in the blanks and then answer the following questions. (Round dollar volume to the nearest whole number and percentage of dollar volume to two decimal places.) % of Total Dollar Volume Dollar Item Annual Demand Cost/Unit Volume A2 250 20 B8 C7 12 45 48,000 67,500 5.56 7.81 4000 1500 D1 150 2000 E9 1000 20 20,000 2.31 F3 60 150 34.72 200 600 1500 20 300,000 12,000 G2 H2 1.39 15 300 300 J8 2500 12,500 1.45

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.
Brock Co. adopted the dollar-value LIFO inventory method as of January 1, year 1. A single inventory pool and an internally computed price index are used to compute Brock’s LIFO inventory layers. Information about Brock’s dollar-value inventory follows: What was Brock’s dollar-value LIFO inventory at December 31, year 2? a. $80,000 b. $74,000 c. $66,000 d. $60,000
Solve step by step, do calculations manually not in software The demand for a certain article is 400 art/month. The ordering cost is $35 and the storage cost is $10/month. The purchase cost is $15 but if 70 items or more are purchased there is a discount andThey drop at $10. a) Obtain the optimal amount of inventory Yb) Obtain the total cost of inventoryc) Is it convenient to accept the discount?d) What is the cost of inventory with quantity m? Solve step by step, do calculations manually not in software
Glorious Gadgets is a retailer of astronomy equipment. They purchase equipment from a supplier and then sell it to customers in their store. The function C(x)=1.5x+12500x^−1+5000 models their total inventory costs (in dollars) as a function of x the lot size for each of their orders from the supplier. The inventory costs include such things as purchasing, processing, shipping, and storing the equipment.A) What lot size should Glorious Gadgets order to minimize their total inventory costs? (NOTE: your answer must be the whole number that corresponds to the lowest cost.) B) What is their minimum total inventory cost?
Design your own inventory management problem with the required input data and answer the following questions : a. What is the optimal order size? b. What is the optimal number of orders per year? What is the optimal number of days between orders? d. What is the annual inventory cost? e. If the lead time were X days/weeks/months, what would be the reorder point? f. For what value of ordering cost would Y units of order size be optimal?
The following information relates to Unique Ltd for the year 2020: Annual Demand 408,375 units Annual cost of Holding £1.50 Annual cost of placing an order £ 500Required: (iv) Calculate the total annual inventory cost (excluding the purchasecost)
In ABC inventory analysis, which of the following is FALSE for class A items? Select one: a. Class A items together make up a higher percentage of total inventory value ($) than either class B or class C items. b. Tighter control of class A items (than for class B or class C items) is appropriate. c. It is advisable to manage Class A items using an automated computer system. d. Class A items together make up smaller percentage of inventory items than class C items. e. Class A items individually may have any value ($): small, medium or high.
Penalty costs can be assessed only against the number of units of demand that cannot be satisfied, or against the number of units weighted by the amount of time thatan order stays on the books. Consider the following history of supply and demandtransactions for a particular part:Number of Items Demand duringMonth Received MonthJanuary 200 520February 175 1,640March 750 670April 950 425May 500 280June 2,050 550Assume that starting inventory at the beginning of January is 480 units.a. Determine the ending inventory each month. Assume that excess demands areback-ordered.b. Assume that each time a unit is demanded that cannot be supplied immediately,a one-time charge of $10 is made. Determine the stock-out cost incurred duringthe six months (1) if excess demand at the end of each month is lost, and (2) ifexcess demand at the end of each month is back-ordered.c. Suppose that each stock-out costs $10 per unit per month that the demandremains unfilled. If demands are filled on a first-come,…
Rafiki Bar uses 10,000 cases of millet beer monthly. One case costs Shs.5,000. Holding cost is 30% of the cost of a case p.a while ordering cost is Shs.100,000 per order. The firm works 360 days in a year while lead time is 6 days. Required: ii. Determine the days between orders and the reorder point iii. Determine the total cost of the inventory policy iv. Suppose actual holding cost turns out to be 15% instead of 30% and the inventory policy above is implemented for a year, determine the cost of prediction error if every other parameter estimate turns out as predicted.
A certain successful entrepreneur purchases high-quality term papers ("guaranteed A") from an even bigger entrepreneur for resale to unethical students. Annual demand is 34000 papers, carrying cost is $3 per paper per year, and ordering cost is $90 per order. Students, being as desperate as they are, never backorder. The purchase price is stiff $35 per paper. What is the optimal order quantity (round your final answer to the nearest integer) ?MY answer 1428Correct answer 1565
The two most important inventory-based questionsanswered by the typical inventory model are:a) when to place an order and the cost of the order.b) when to place an order and how much of an itemto order.c) how much of an item to order and the cost of the order.d) how much of an item to order and with whom theorder should be placed.
Helen needs 1159 kgs of chicken per day on average to make enchiladas for her store. The supplier charges a $67 delivery fee per order (which is independent of the order size) and $3.90 per kg. Helen’s annual holding cost is 20%. Assume 52 weeks per year and 7 days per week. If Helen wants to minimize inventory holding and ordering costs, how much chicken should she purchase with each order (in kgs)? Provide your answer as an integer value.Use Econimic Order Quantity formula. The answer is 8,513. Not sure how to get there.