Operations Management: Processes and Supply Chains, Student Value Edition Plus MyLab Operations Management with Pearson eText -- Access Card Package (12th Edition)
12th Edition
ISBN: 9780134855424
Author: Lee J. Krajewski, Manoj K. Malhotra, Larry P. Ritzman
Publisher: PEARSON
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Textbook Question
Chapter 12, Problem 8P
Dogs-R-Us and K-9, Inc. are two retail stores that cater to the needs of dog owners in the greater Charleston area. There is healthy competition between these two establishments. Both operate 52 weeks a year and both sell approximately the same type and dollar value of items. Table 12.4 provides the cost of goods sold, the average inventory level, and unit value of each item sold in the two stores.
- Compare the two retail stores in terms of average aggregate inventory value.
- Compare the two retail stores in terms of weeks of supply.
- Compare the two retail stores in terms of inventory turnover.
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Inventory Management
Williams & Sons last year reported sales of $39 million, cost of goods sold (COGS) of $30 million, and an inventory turnover ratio of 5. The company is now adopting a new inventory system. If the new system is able to reduce the firm's inventory level and increase the firm's inventory turnover ratio to 6 while maintaining the same level of sales and COGS, how much cash will be freed up? Do not round intermediate calculations. Enter your answer in dollars. For example, an answer of $1.23 million should be entered as 1,230,000,000. Round your answer to the nearest dollar.
How does the Wilson approach adapt to seasonal variations in demand and inventory management?
The following lots of a particular commodity were available for sale during the year
Beginning inventory
9 units at $47
First purchase
15 units at $50
Second purchase
20 units at $21
Third purchase
18 units at $58
The firm uses the periodic system, and there are 27 units of the commodity on hand at the end of the year. What is the ending inventory balance at the end of the year rounded to nearest dollar according to the average cost method? Do not round intermediate calculations.
a.$1,269
b.$1,233
c.$1,323
d.$1,148
Chapter 12 Solutions
Operations Management: Processes and Supply Chains, Student Value Edition Plus MyLab Operations Management with Pearson eText -- Access Card Package (12th Edition)
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