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.) Dollar Volume % of Total Dollar Item Annual Demand Cost/Unit Volume A2 500 300 4000 1500 B8 12 48,000 7.02 C7 45 67,500 9.87 D1 20 35 1000 20,000 E9 20 2.92 F3 34 250 300,000 12,000 43.85 G2 H2 200 600 1500 20 1.75 15 1000 65 J8 2500 12,500 1.83

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.) Dollar Volume % of Total Dollar Item Annual Demand Cost/Unit Volume A2 500 300 4000 1500 B8 12 48,000 7.02 C7 45 67,500 9.87 D1 20 35 1000 20,000 E9 20 2.92 F3 34 250 300,000 12,000 43.85 G2 H2 200 600 1500 20 1.75 15 1000 65 J8 2500 12,500 1.83

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.
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
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
Your objective is to help company by determining EOQ* (Economic Order Quantity) that minimizes the totalinventory cost for a company that sells ceiling fans. Your worksheet provides information about the currentorder quantity, demand quantity and other costs.Questions: Answer A and Ba. With the current order quantity, what is the total cost of inventory?b. Implement the problem in Excel and find the order quantity (EOQ) (round to nearest integer) that givesminimum inventory cost. Note: this is a Non-linear programming, hence select “GRG Nonlinear” method inSolver- How much money would company save by switching to optimum quantity from current orderquantity?
I need a detailed explanation on how to solve this problem: A paint shop implements an inventory policy on its stock of white paint, which costs the store $6 per can. Monthly demand for cans of white paint is normal with mean 28 and standard deviation 8. The replenishment lead time is 14 weeks. Excess demand is backordered, but costs $10 per back ordered can in labor and loss of goodwill. There is a fixed cost of $15 per order, and the holding cost is based on 30% interest rate per annum. In your computations, assume 4 weeks per month. - Write down the model name and parameters. - What are the optimal lot size and reorder points for white paint (include the formulas)? - What is the optimal safety stock (include the formula)? *** Suppose the paint shop from the above problem adopts a service level policy. - What are the optimal lot size and reorder points for white paint, such that 90% of the cycles are filled without backordering (include all formulas)? - What is the fill rate…
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?
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.
Rapallo Sneakers, Inc. sells a pair of LG sneakers for $42. Due to the recent fitness craze, these shoes are in high demand: 52 pairs of shoes are sold per week. The ordering cost is $42 per order, and the annual holding cost is 25 percent of the selling price. If the store operates 48 weeks a year, what can you say about the size of the current order quantity of 225 pairs?
Custom Computers, Inc. assembles custom home computersystems. Th e heat sinks needed are bought for $12 each and areordered in quantities of 1300 units. Annual demand is 5200 heatsinks, the annual inventory holding cost rate is $3 per unit, andthe cost to place an order is estimated to be $50. Calculate thefollowing:(a) Average inventory level(b) Th e number of orders placed per year(c) Th e total annual inventory holding cost(d) Th e total annual ordering cost(e) Th e total annual cost
H&M, a Fashion Giant, Has a Problem: $4.3 Billion in Unsold Clothes. This was reported by the New York Times on March 27, 2018. Here is a short excerpt. I have provided the full story in a Word document attached to this discussion. It is a little dated but again inventory issues continued during the pandemic. Overall, this exemplifies the challenges of maintaining correct inventory levels since there is a lot of money held in excess inventory. “In the world of fashion retailing, where shopping is fast moving online and stores try to keep inventories closely matched to sales, even a small stack of unsold clothes can be a bad sign. What about a $4.3 billion pile of shirts, dresses and accessories? That is the problem facing H&M, the Swedish fashion retailer, which is struggling with a mounting stack of unsold inventory. Signs of its expanding unsold inventory began emerging last year, when it reported an unexpected quarterly drop in sales. The decline was the first in two…
H&M, a Fashion Giant, Has a Problem: $4.3 Billion in Unsold Clothes. This was reported by the New York Times on March 27, 2018. Here is a short excerpt. I have provided the full story in a word document attached to this discussion. It is a little dated but again inventory issues continued during the pandemic. Overall, this exemplifies the challenges of maintaining correct inventory levels since there is a lot of money held in excess inventory. “In the world of fashion retailing, where shopping is fast moving online and stores try to keep inventories closely matched to sales, even a small stack of unsold clothes can be a bad sign. What about a $4.3 billion pile of shirts, dresses and accessories? That is the problem facing H&M, the Swedish fashion retailer, which is struggling with a mounting stack of unsold inventory. Signs of its expanding unsold inventory began emerging last year, when it reported an unexpected quarterly drop in sales. The decline was the first in two…
Dave's Sporting Goods sells Mountain Mouse freeze-dried meals. Dave's uses a continuous review system to manage meal inventories. Suppose Mountain Mouse offers the following volume discounts to its customers: 1−950 meals: $6.50 per meal 951 or more meals: $4.50 per meal. Annual demand is 2,900 meals, and the cost to place an order is $23. Suppose the holding cost is $1.50 per meal per year. How many meals should Dave's order at a time? Part 2 Dave's Sporting Goods should order ______ meals at a time to take advantage of the lower cost per unit. (Enter your response rounded to the nearest whole number.)