Cyberphone, a manufacturer of cell phone accessories, ended the current year with annual sales (at cost) of $56 million. During the year, the inventory of access turned over eight times. For the next year, Cyberphone plans to increase annual sales (at cost) by 31 percent. a. What is the increase in the average aggregate inventory value required if Cyberphone maintains the same inventory turnover during the next year? $. (Ent your response as an integer.) b. What change in inventory turns must Cyberphone achieve if, through better supply chain management, it wants to support next year's sales with no increase average aggregate inventory value? turns. (Enter your response rounded to one decimal place.)

Cyberphone, a manufacturer of cell phone accessories, ended the current year with annual sales (at cost) of $56 million. During the year, the inventory of access turned over eight times. For the next year, Cyberphone plans to increase annual sales (at cost) by 31 percent. a. What is the increase in the average aggregate inventory value required if Cyberphone maintains the same inventory turnover during the next year? $. (Ent your response as an integer.) b. What change in inventory turns must Cyberphone achieve if, through better supply chain management, it wants to support next year's sales with no increase average aggregate inventory value? turns. (Enter your response rounded to one decimal place.)

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

ChapterC: Cases

Section: Chapter Questions

Problem 5.1SC: Scenario 3 Ben Gibson, the purchasing manager at Coastal Products, was reviewing purchasing...

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Scenario 3 Ben Gibson, the purchasing manager at Coastal Products, was reviewing purchasing expenditures for packaging materials with Jeff Joyner. Ben was particularly disturbed about the amount spent on corrugated boxes purchased from Southeastern Corrugated. Ben said, I dont like the salesman from that company. He comes around here acting like he owns the place. He loves to tell us about his fancy car, house, and vacations. It seems to me he must be making too much money off of us! Jeff responded that he heard Southeastern Corrugated was going to ask for a price increase to cover the rising costs of raw material paper stock. Jeff further stated that Southeastern would probably ask for more than what was justified simply from rising paper stock costs. After the meeting, Ben decided he had heard enough. After all, he prided himself on being a results-oriented manager. There was no way he was going to allow that salesman to keep taking advantage of Coastal Products. Ben called Jeff and told him it was time to rebid the corrugated contract before Southeastern came in with a price increase request. Who did Jeff know that might be interested in the business? Jeff replied he had several companies in mind to include in the bidding process. These companies would surely come in at a lower price, partly because they used lower-grade boxes that would probably work well enough in Coastal Products process. Jeff also explained that these suppliers were not serious contenders for the business. Their purpose was to create competition with the bids. Ben told Jeff to make sure that Southeastern was well aware that these new suppliers were bidding on the contract. He also said to make sure the suppliers knew that price was going to be the determining factor in this quote, because he considered corrugated boxes to be a standard industry item. Is Ben Gibson acting legally? Is he acting ethically? Why or why not?
Scenario 3 Ben Gibson, the purchasing manager at Coastal Products, was reviewing purchasing expenditures for packaging materials with Jeff Joyner. Ben was particularly disturbed about the amount spent on corrugated boxes purchased from Southeastern Corrugated. Ben said, I dont like the salesman from that company. He comes around here acting like he owns the place. He loves to tell us about his fancy car, house, and vacations. It seems to me he must be making too much money off of us! Jeff responded that he heard Southeastern Corrugated was going to ask for a price increase to cover the rising costs of raw material paper stock. Jeff further stated that Southeastern would probably ask for more than what was justified simply from rising paper stock costs. After the meeting, Ben decided he had heard enough. After all, he prided himself on being a results-oriented manager. There was no way he was going to allow that salesman to keep taking advantage of Coastal Products. Ben called Jeff and told him it was time to rebid the corrugated contract before Southeastern came in with a price increase request. Who did Jeff know that might be interested in the business? Jeff replied he had several companies in mind to include in the bidding process. These companies would surely come in at a lower price, partly because they used lower-grade boxes that would probably work well enough in Coastal Products process. Jeff also explained that these suppliers were not serious contenders for the business. Their purpose was to create competition with the bids. Ben told Jeff to make sure that Southeastern was well aware that these new suppliers were bidding on the contract. He also said to make sure the suppliers knew that price was going to be the determining factor in this quote, because he considered corrugated boxes to be a standard industry item. As the Marketing Manager for Southeastern Corrugated, what would you do upon receiving the request for quotation from Coastal Products?
Cyberphone, a manufacturer of cell phone accessories, ended the current year with annual sales (at cost) of $72 million. During the year, the inventory of accessories turned over eight times. For the next year, Cyberphone plans to increase annual sales (at cost) by 18 percent. a. What is the increase in the average aggregate inventory value required if Cyberphone maintains the same inventory turnover during the next year? $nothing. (Enter your response as an integer.) b. What change in inventory turns must Cyberphone achieve if, through better supply chain management, it wants to support next year's sales with no increase in the average aggregate inventory value? nothing turns. (Enter your response rounded to one decimal place.)
FarmBox is a company who grow and distribute fresh food produce directly to customers via an online ordering platform, based in Cheshire, UK. The company started in 2019 and began as a family run business that was staffed by 4 family members plus two farmhands, with the use of one delivery van.As the Covid pandemic struck in 2020 the business experienced unexpected rapid growth with orders tripling almost overnight, whilst the firm has the product to meet the demand of customers, investment wasneeded in equipment and more importantly, the number of staff needed to increase immediately if productivity was to remain effective.To address this the owner placed an online advert for farmhands requiring CV’s to be emailed to the business. Candidates that FarmBox were interested in took part in a 20 minute online video interview that aimed to determine their skills and suitability and then successful candidates began work once they were able to evidence that they were free of the Covid virus.…
Cyberphone, a manufacturer of cell phone accessories,ended the current year with annual sales (at cost) of $48 mil-lion. During the year, the inventory of accessories turned oversix times. For the next year, Cyberphone plans to increase an-nual sales (at cost) by 25 percent.a. What is the increase in the average aggregate inventoryvalue required if Cyberphone maintains the same inven-tory turnover during the next year?b. What change in inventory turns must Cyberphone achieveif, through better supply chain management, it wants tosupport next year’s sales with no increase in the averageaggregate inventory value?
Demand for stereo headphones and MP3 players for joggers has caused Nina Industries to grow almost 50 percent over the past year. The number of joggers continues to expand, so Nina expects demand for headsets to also expand, because, as yet, no safety laws have been passed to prevent joggers from wearing them. Demand for the players for last year was as follows: MONTH DEMAND (UNITS) January 4,240 February 4,340 March 4,040 April 4,440 May 5,040 June 4,740 July 5,340 August 4,940 September 5,440 October 5,740 November 6,335 December 6,030 a. Using linear regression analysis, what would you estimate demand to be for each month next year? (Do not round intermediate calculations. Round your answers to 2 decimal places.) b. To be reasonably confident of meeting demand, Nina decides to use 4 standard errors of estimate for safety. How many additional units should be held to meet this level of confidence? (Do not round intermediate calculations. Round…
The Quality Hotel has 309 rooms. On December 10th they sold 265 rooms. In addition, they had 1 comp. Total room revenue for the day was $50,080. On this day there were 4 rooms out of inventory (OOI) due to renovations. Calculate the following for December 10th, carrying your final answers out to the 100th place: Occupancy Percentage ADR (Average Daily Rate) RevPAR (Revenue per Available Room)
Sapphire Aerospace operates 52 weeks per year, and its cost of goods sold last year was $6,500,000. The firm carries eight items in inventory: four raw materials, two work-in-processitems, and two finished goods. Table 12.3 shows last year’s average inventory levels for these items, along with their unit values.a. What is the average aggregate inventory value?b. How many weeks of supply does the firm have?c. What was the inventory turnover last year?
Demand for stereo headphones and MP3 players for joggers has caused Nina Industries to grow almost 50 percent over the past year. The number of joggers continues to expand, so Nina expects demand for headsets to also expand, because yet, no safety laws have been passed to prevent joggers from wearing them. Demand for the players for last year was as follows: MONTH DEMAND (UNITS) January 4,220 February 4,320 March 4,020 April 4,420 May 5,020 June 4,720 July 5,320 August 4,920 September 5,420 October 5,720 November 6,320 December 6,020 Using linear regression analysis, what would you estimate demand to be for each month next year? (Round two decimal places) To be reasonably confident of meeting demand, Nina decides to use 3 standard errors of estimate for safety. How many additional units…
As an operations management consultant, you have been asked to evaluate a furniture manufacturer’s cash to cash conversion cycle under the following assumptions: sales of $23.5 million, cost of goods sold of $20.8 million, 50 operating weeks a year, total average on hand inventory of $2,150,000, accounts receivable equal to $2,455,000, and accounts payable of $3,695,000. What do you conclude? What recommendations can you make to improve performance? What would be the impact of reducing the accounts payable from $3,695,000to $2,000,000 and all other data remained the same? Please show in detail these impacts quantitatively in your answers.
Sticky Fingers Inc. produces packing and masking tape. Last year’s annual report has been compiled, and you are in charge of business analysis for the year. The company had a goal for inventoryturnover of 6 for last year. The actual results were cost of goods sold of $400,000, beginning inventory of $50,000, and ending inventory of $70,000. What was the actual inventory turnover, and atwhat percent did the firm achieve its goal?
Echo’s revenue jumped 23 percent year over year in the third quarter to $691.5 million after declining 7 percent in the second quarter, as retail and industrial freight demand increased. “We’ve had strong truckload market conditions ever since the trough in April,” Waggoner said. Q3 truckload volume was up 13.6 percent from a year ago, and truckload revenue 32.3 percent. Can you infer the truckload average price change from the data above? Given these numbers, how much should the truckload volume increase for the prices to go back to where they were a year ago if the price elasticity of demand is -2?