the statements concerning reasons to hold inventory are true Except: To meet variations in demand To allow inflexible production schedules To take advantage of price discounts As a safeguard against variations in delivery time
Q: 10. Interest, insurance, taxes, depreciation, breakage, warehousing, opportunity costs etc. are the…
A: Inventory carrying costs are defined as the costs that are identified by all the expenses related to…
Q: A machine is producing two different products: A and B. Which of the following production schedules…
A: To answer this, assume similar demand and production output for both the products. Since both…
Q: Snip
A: Solution The opening inventory of the current month is the closing inventory of the previous month.…
Q: Annual demand (D) is 3,650 units (constant). Lead time (LT) is 10 days (constant). Find reorder…
A: Annual Demand = 3650 Daily Demand = 3650 / 365 = 10 Lead time = 10 Reorder Point = Daily…
Q: The role of safety stock in an organization is to a. reduce the lead time for an order to be…
A: Safety stock is a word used to define a quantity of additional stock kept on hand to avoid stock…
Q: Provide two possible reasons for using the fixed-order-interval model. Give an example for each…
A: In this, a fixed stretch is created by keeping a mind the interest of the item. It is utilized in…
Q: In a single period inventory model, the demand is assumed to follow a normal distribution with…
A: In this question, Given data Mean value =100, Variance is 25, so, the standard deviation would be…
Q: Models of inventory systems frequently consider the relationships among a beginning inventory, a…
A: a) The mathematical relationship that would indicate ending inventory as function of beginning…
Q: Ali is the manager of a well reputed organization. He is assigned to auction some assets of the…
A: The contract is an agreement between two parties for a legal foundation on some stated terms and…
Q: While responding and processing customers’ orders organization have to perform many tasks as…
A: While responding and processing customers orders, Organization has to perform many tasks as…
Q: If a firm has a _______, they would be more willing to store inventory in a warehouse for longer…
A: Request changeability is a proportion of how much inconstancy there is in client interest. It is the…
Q: 34. The company currently calculates its Days Receivables at 32 days, its Days Payables at 41 days…
A: Formula to be used; Cash conversion cycle (CCC) = Days Receivables + Days Inventory - Days Payables…
Q: An inventory system that is based on the idea that all required inventory items should be supplied…
A: Inventory management is described as a process of managing, tracking, and controlling the inventory…
Q: A service garage uses 120 boxes of cleaning cloths a year. The boxes cost $6 each. Ordering cost is…
A: Annual demand, d=120 boxes Unit cost, u =$6 per box Holding cost percentage =10% Ordering cost, o…
Q: Which among the following is an inventory
A: The correct option is b) New cars kept outside the said bahwan showroom for sale.
Q: Which one of the following is NOT an example of pure risk? Potential loss of equity value due to…
A: Pure risk , moreover called absolute risk, is a category of threat that is beyond human manipulate…
Q: For the current year, Naranda & Associates has projected sales of 72,000 barrels, a cost per order…
A: The question is related to the Inventory Management. Economic order quantity is the required order…
Q: Eggs in the poultry farm Dresses in a ready-to-wear shop Fresh fruits in a market stall Chairs in a…
A: An inventory is a list of all the items in a specific location. The term is often used in business…
Q: The grievance process/procedure is the vehicle for administering the contract on a _____basis a.…
A: Ans. At the point when an employee feels that they've been violated - be it an unjustifiable check,…
Q: PM CTC is engaged in selling shoes for the military. Upon checking on PM CTC’s supplier, it takes 8…
A: Given- Lead time = 8 daysAverage daily demand= 2000 pairs of shoes
Q: The principal goal of inventory management systems is to balance the costs of ordering, shipping,…
A: Inventory is a term that defines the raw materials, and parts that are used by a company for selling…
Q: In some situations with uncertain demand, so called (Q, R) -models are used. Explain shortly in…
A: At first let's analyze the Newsboy Model. This has been implemented with normal demand. If the…
Q: Which of the following are used for calculating economic order frequency? i. Total annual…
A: Economic order quantity is the optimal quantity that the business needs to buy the inventory to…
Q: The Lemma Company manufactures and sells ten products. Managers find ways to reduce the setup and…
A: EOQ = SQRT(2 * DEMAND * ORDERING COST / HOLDING COST) NEW EOQ = SQRT(2 * DEMAND * ORDERING…
Q: After inventory you found out that there are 10 green shirts, 5 white shirts, and 3 red shirts sold…
A: In the given question, 10 green shirts, 5 white shirts, and 3 red shirts are currently in stock.…
Q: . The overall objective of inventory management is to achieve satisfactory levels of customer…
A: Concept Introduction Inventory Management can be define as a process where plans are made to…
Q: If January’s ending inventory is negative 300 or -300, with the cost information shown below, select…
A: Here, we could see that the ending inventory of the January month, this value is negative or this…
Q: after inventory you found out that there are 10 green shirts, 5 white shirts, and 3 red shirts sold…
A: In the given question, 10 green shirts, 5 white shirts and 3 red shirts are currently in the stock.…
Q: The various quantities of a commodity that a consumer would purchase at different prices of another…
A: Market Demand refers to the quantity of goods that consumers of a particular market are willing to…
Q: Inventory order is placed when 1)Only when projected or actual on hand stocks value is 2)positive…
A: Stock includes the goods and services of the business organization which is kept as an inventory in…
Q: Which of the following situations lead to scarcity O a. When demand is more than supply O b. When…
A: The demand for a commodity is described as a schedule of the quantities that consumers would be…
Q: A firm has $5,000,000 of inventory on average and annual sales of $30,000,000. Assume there are 365…
A: Inventory conversion period means the number of days taken for converting the raw materials into…
Q: Inventory on a company's balance sheet i
A: Answer : D
Q: Which of the following is less likely to represent an inventory ordering cost? a. Warehousing costs…
A: Inventory costs are every expense linked with ordering, holding, and maintaining the inventory or…
Q: The following information regarding inventory policy was assembled by the GB Inc. The company uses a…
A: The reorder point is the inventory level at which an order should be placed.
Q: With reference to the concept of “Arm's Length Transaction", which of the following statements is…
A: The first option, i.e., the concept where the concerned companies come in contact with each other…
Q: Define the term "inventory turn" and discuss why it is an important indicator of an organization’s…
A: "Inventory Turn" is the rate at which a company recoups its inventory in a given period usually in a…
Q: 6 Which of the following statements is true with regard to cycle stock? a It is also called…
A: Cycle stock is the measure of inventory that is to be utilized during a given period. The time frame…
Q: Speculative stock aims to, a. Buffer against uncertainty b. Satisfy demand during lead times c.…
A: Understanding a Speculative Stock Speculative stocks appeal to transient merchants because of their…
Q: Which report accounting method shows an overview of the money received and spent for a specific…
A: Answer: Accrual Basis Explanation: As per accrual basis, the amount received for a specific period…
Q: Inventory is not a property that is acquired for the purpose of resale in a business activity.
A: Inventory is a kind of asset that is bought and sold in the normal course of business. It's possible…
Q: Inventory in excess of expected demand to compensate for variability and lead time is_ a. Temporary…
A: Buffering inventories area unit the inventories kept for future wants of a corporation as there is…
Q: Ali is the manager of a well reputed organization. He is assigned to auction some assets of the…
A: A contract is a verbal or written agreement enforceable by law and is agreed upon between two…
Q: Discuss the cost penalties incurred by a firm that holds too much inventory andone that holds too…
A: It can lead to unnecessary inventory holding costs that can be used for other purposes. It can also…
Q: Which of the following procedures will best detect the theft of valuable items froman inventory that…
A: Inventory is the term which is defined as the goods as well as materials that the business holds for…
Q: An EOQ model that incorporates quantity discounts is used to determine: a. whether to use…
A: Answer - how many units should be ordered
Q: The average lead time is 10 days and the average daily usage of widgets is 20. The company has…
A: A reorder point (ROP) is a detailed level at which your stock needs to be reloaded. In simple words,…
- All the statements concerning reasons to hold inventory are true Except:
- To meet variations in demand
- To allow inflexible production
schedules - To take advantage of price discounts
- As a safeguard against variations in delivery time
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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.asap!! A manager of an inventory system believes that inventory models are important decision making aids. Even though often using an EOQ policy, the manager never considered a backorder model because of the assumption that backorders were “bad” and should be avoided. However, with upper management’s continued pressure for cost reduction, you have been asked to analyze the economics of a backorder policy for some products that can possibly be backordered. For a specific product with D = 1200 units per year, Co = 160, = 4, and = 25, what is the difference in total annual cost between the EOQ model and the planned shortage or backorder model? If the manager adds constraints that no more than 25% of the units can be backordered and that no customer will have to wait more than 18 days for an order, should the backorder inventory policy be adopted? Assume 300 working days per year.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.
- Tacky Souvenirs sells lovely handmade tablecloths at its islandstore. These tablecloths cost Tacky $15 each. Customers wantto buy the tablecloths at a rate of 240 per week. The companyoperates 52 weeks per year. Tacky, the owner, estimates hisordering cost at $50. Annual holding costs are 20 percent of theunit cost. Lead time is 2 weeks. Using the information given,(a) Calculate the economic order quantity.(b) Calculate the total annual costs using the EOQ.(c) Determine the reorder point.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 costI only need help with part E please.... The A&M Hobby Shop carries a line of radio-controlled model racing cars. Demand for the cars is assumed to be constant at a rate of 50 cars per month. The cars cost $80 each, and ordering costs are approximately $15 per order, regardless of the order size. The annual holding cost rate is 20%. (a) Determine the economic order quantity and total annual cost (in $) under the assumption that no backorders are permitted. (Round your answers to two decimal places.) Q*= TC=$ (b) Using a $45 per-unit per-year backorder cost, determine the minimum cost inventory policy and total annual cost (in $) for the model racing cars. (Round your answers to two decimal places.) Q*= TC=$ (c)What is the maximum number of days a customer would have to wait for a backorder under the policy in part (b)? Assume that the Hobby Shop is open for business 300 days per year. (Round your answer to two decimal places.) days (d)Would you recommend a…
- 1. Speculative stock aims to, a. Buffer against uncertainty b. Satisfy demand during lead times c. All of the above d. Buffer against supply fluctuations 2. Outbound means moving goods from manufacturer to customers. True or False.Please complete the problem usinf EXCEL, Show ALL formulas Demand for a popular athletic shoe is nearly constant at 800 pairs per week for a regional division of a national retailer. The cost per pair is $54. It costs $72 to place an order, and annual holding costs are charged at 22% of the cost per unit. The lead time is two weeks. a. What is the EOQ? b. What is the reorder point? c. What is the cycle time? d. What is the total annual cost?Emery Pharmaceutical uses an unstable chemical compound that must be kept in an environment where both temperature and humidity can be controlled. Emery uses 200 pounds per month of the chemical, estimates the holding cost to be £3.33 (because of spoilage), and estimates order costs to be £10 per order. What quantity should be ordered, and which supplier should be used? Discuss factor(s) should be considered besides total cost.
- 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…1. Demand is Normally distributed with a mean of 66 per week and a weekly variance of 3. The ordering cost is $57.5. Lead time is 8 weeks. Shortages cost an estimated $4.14 per unit short to expedite orders to appease customers. The holding cost is $7.06 per week. Estimate the stockout risk if the target service level is 0.22. 2. Demand is Normally distributed with a mean of 43 per week and a weekly variance of 8. The ordering cost is $83.26. Lead time is 4 weeks. Shortages cost an estimated $1.96 per unit short to expedite orders to appease customers. The holding cost is $9.2 per week. Calculate ROP if the target service level is 95%.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?