Which model of the following has been used to calculate the Inventory cost: Average inventory * hours* Inventory Cost (Start inventory + End inventory) * hours* Inventory Cost Average (Start inventory + end inventory) * inventory cost None of the above
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24 . Which model of the following has been used to calculate the Inventory cost:
-
- Average inventory * hours* Inventory Cost
- (Start inventory + End inventory) * hours* Inventory Cost
- Average (Start inventory + end inventory) * inventory cost
- None of the above
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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.The efficiency of an inventory system is often measuredby the turnover ratio. The turnover ratio (TR) is defined byTR a Does a high turnover ratio indicate an efficient in-ventory system? b If the EOQ model is being used, determine TR interms of K, D, h, and q.c Suppose D is increased. Show that TR will also beincreased.The efficiency of an inventory system is often measuredby the turnover ratio. (TR), defined byTR 5Cost of goods sold per yearAverage value of on hand inventorya. Does a high turnover ratio indicate an efficientinventorysystem?b. If the EOQ model is being used, determine TR interms of K, D, h, and Q.c. Suppose that D increases. Show that TR will alsoincrease. Does this make intuitive sense?
- The following data are for an inventory item in which the EOQ model applies: Given: D = 10,000 units (annual demand) R = P10 per unit P = P500 per order C = 25% 0f average inventory Find: a. the number of orders per year b. the economic order quantity (EOQ) c. the amount in pesos per order d. the number of days interval between orders e. the total inventory costsThomas Kratzer is the purchasing manager for theheadquarters of a large insurance company chain with a centralinventory operation. Thomas’s fastest-moving inventory item hasa demand of 6,000 units per year. The cost of each unit is $100, and the inventory carrying cost is $10 per unit per year. The aver-age ordering cost is $30 per order. It takes about 5 days for an order to arrive, and the demand for 1 week is 120 units. (This is acorporate operation, and there are 250 working days per year.)a) What is the EOQ?b) What is the average inventory if the EOQ is used?c) What is the optimal number of orders per year?d) What is the optimal number of days in between any two orders?e) What is the annual cost of ordering and holding inventory?f ) What is the total annual inventory cost, including the cost ofthe 6,000 units?Inventory shrinkage is the difference between inventory in the warehouse and inventory counted. True or false?
- Please do not give solution in image format thanku 1. Current total inventory level (I E) of a company is 10,000 units, which are held at 4 different facilities (n E). Next year, the company plans to open 12 new facilities. Provide an estimate on the total future inventory level (I F) for the company. a. 60,000 units b. 10,000 units c. 40,000 units d. 20,000 units e. 17,321 unitsThe materials manager for a billiard ball maker must periodically place orders for resin, one of the raw materials used in producing billiard balls. She knows that manufacturing uses resin at a rate of 50 kilograms each day, and that it costs $.04 per day to carry a kilogram of resin in inventory. She also knows that the order costs for resin are $100 per order, and that the lead time for delivery is four days. If the order size was 1,000 kilograms of resin, what would be the average inventory level?True or false 1. Other income and expenses are items that are not related to the primary operating activity 2. Transportation-in is considered a cost of purchasing inventory
- Cheryl Druehl has asked you to help her determinethe best ordering policy for a new product. The demand for thenew product has been forecasted to be about I ,000 units annually.To help you get a handle on the carrying and ordering costs,Cheryl has given you the list of last year's costs. She thought thatthese costs might be appropriate for the new product. She also told you that these data were compiled for 10,000 inventoryitems that were carried or held during the year. You havealso determined that 200 orders were placed last year. Your job as a new opera tions management graduate is to help Cheryl determinethe economic order quantity for the new product.How does the Wilson approach optimize inventory management? Provide a detailed explanation.5. Why can it be bad business practice to not maintain adequate inventory? A. Results in high inventory carrying costs B. Results in a long average collection period C. Can result in stockouts and lost business D. Can result in a long average payment period E. None of the above 6. Splodnick Corporation sells 40,000 units of nebulous ambiguities every year. It costs them $100 to order more units, regardless of the order size. It costs Splodnick 63 cents per year to carry each unit. Using the Economic Order Quantity model, what should be Splodnick’s optimal number of units per order? Round your answer to the nearest whole number of units. A. 356 B. 3,563 C. 283 D. 178 E. None of the above