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Inventory Management

Inventory Management and Demand

Company A's demand is uniform throughout the year and totals 18,000 units per year. Ordering costs total $38 per order. The annual holding cost rate is 26% of the value of the inventory. The per-unit cost of inventory is $12. Company B's demand is uniform throughout the year and totals 15,000 units per year. The production s

Management Inventory

Hi, I need some assistance discussing the following questions: - What would be three different inventory types that a dry cleaner could use? - What would be an average value of total inventory maintained by a dry cleaner and how would this compare to the annual gross income? - What are the key issues or problems with invento

Order Quantity

2. A store has collected the following information on one of its products: Demand = 6,760 units/year Standard deviation of weekly demand = 18 units Ordering costs = $40/order Holding costs = $2/unit/year Cycle-service level = 90% (z for 90% = 1.28) Lead-time = 3 weeks Number of weeks per year = 52 weeks a. If the firm

Costs allocated to ending inventories

Vegas Company's ending Goods in Process Inventory account consists of 4,500 units of partially completed product, and its Finished Goods Inventory account consists of 11,700 units of product. The factory manager determines that the Goods in Process Inventory includes a direct materials cost of $10 per unit and direct labor c

Statement Elements for a Company Manufacturing

Following are accountig records for xx company Raw material purchases.......350,000 Direct labour....508,000 Indirect labour....218,000 Selling and admin salaries....266,000 Building depriciation...160,000 Other selling and admin exp....380,000 Other factory costs...688,000 Sales revenue (260$ per unit).....2,990,000 75

What documents are used in safeguarding inventories?

Executing and recording manufacturing transactions and safeguarding inventories involve the following: 1. Initiating production: Planning and controlling production 2. Production of Inventory: Issuing raw materials Processing goods in production Transferring completed work to finished goods Protecting inventorie

Budgets to Isaac Company

1. The following forecasted sales pertain to Isaac Company: Month Sales September $180,000 October 200,000 November 160,000 December 140,000 Collection pattern: 55 percent in month of sale 45 percent in month following sale Accounts Receivable (August 31) $48,000 Finished Goods Inventory (August 31) 19,000 Isaa

COG

The following data (in thousands of dollars) have been taken from the accounting records of Larop Corporation for the just-completed year: Sales................................................................................. $910 Purchases of raw materials................................................ $22

Discussion Question-Research inventory management

Research inventory management. Explain, based on your research, how planning inventory is both an art and a science. In addition, suppose you are trying to reduce inventory in your company, without negatively affecting customer service. What actions might you be able to take to accomplish this task?

Inventory control system

Question 1: You are in charge of setting up an inventory control system in a bookstore. The books in question have an ongoing demand pattern, with some random number of books being sold each day. This demand pattern is expected to continue for quite some time. When we need more copies of a particular title, we can order them and

Master Budgets and Planning

The production budget for Zink Company shows units to be produced as follows: July, 620; August, 680; September, 540. Each unit produced requires two hours of direct labor. The direct labor rate is currently $16 per hour but is predicted to be $16.75 per hour in September. Prepare a direct labor budget for the months July, Augu

Designated market value

13) Designated market value A. is always the middle value of replacement cost, net realizable value, and net realizable value less a normal profit margin. B. may sometimes exceed net realizable value. C. should always be equal to net realizable value. D. should always be equal to net realizable value less a normal prof

Calculating Yearly Production Numbers

A company produces and sells pillows. It expects to sell 10,000 pillows in the year 2012 and had 1,000 pillows in finished goods inventory at the end of 2011. Candace would like to complete operations in the year 2012 with at least 1,250 completed pillows in inventory. There is no ending work-in-process inventory. The pillows se

Common Elements of Four Operations Management

Consider these questions: What are some common elements or aspects of the four operations management: producitivity, inventory, capacity, quality? Compare the relative importance of these in manufacturing (e.g. Excellent Mfg. Co.) to the importance in other kinds of business, e.g. book store. Also, consisider facility layout

kudler review flowcharts

Management at Kudler Fine Foods has reviewed the flowcharts prepared in Week Two and is requesting information on controls that will be required. 1,100 words in which you address the following: - Analyze the risks in the systems that your team analyzed. - Identify all risks and internal control points by incorporating the

Ystad Industries: Did Performance Improve?

Ystad Industries: Roland Anderson is the manager of the Ekland Division of Ystad Industries. He is one of several managers being considered for position of CEO, as the current CEO is retiring in a year. All divisions use standard absorption costing. The division has the capacity to produce 50,000 units a quarter and quarterly

Operations Management for Managers

How is inventory like water flowing into and out of a bathtub? What is the inventory balancing equation? How do you measure how much inventory has been used during a specific time period, say a year? In operations that convert materials from one stage to another, like in manufacturing and baking, how is labor part of the invento

Storage and Handling Information

I have been searching for some information. I was wondering is someone can help and point me in the right direction for finding information on this topic: Storage and handling decisions are difficult. The wrong decision can be costly to the organizations survivability. How can a organization make more informed decisions rega

Inventory Control

The warehouse manager on a construction is trying to figure out a rational way to control inventory for several parts and has asked for your help. The first part is a particular type of valve actuator. It is contained in the material management system and the projections are that they will be installed at a rather steady rate ov

Journalizing Transactions for Inventory

Thelma's Amusements completed the following transactions during November 2012: Nov 1 Purchased supplies for cash, $700. 4 Purchased inventory on credit terms of 3/10, n/eom, $9,600. 8 Returned half the inventory purchased on November 4. It was not the inventory ordered. 10

Operation Management

Southeast Hospital currently buys surgical gloves in lots of 1,500 boxes once every four months. Under this ordering policy, demand for gloves will be completely satisfied with no surplus and no shortage. The carrying cost per box is $15.00 per box per year, which is equivalent to 10% of cost, and the ordering cost is $150 per o

Inventory Management

Ross White's machine shop uses 2,500 brackets during the course of a year, and this usage is relatively constant throughout the year. These brackets are purchased from a supplier 100 miles away for $15 each, and the lead time is 2 days. The holding cost per bracket per year is $1.50 (or 10% of the unit cost) and the ordering cos

Economic Order Quantity: Doritos and Pepsi

See the attached file. Doritos Pepsi Annual Demand 500 1000 Ordering Cost $ 25.00 $ 10.00 Holding Cost (one unit for one year) $ 0.25 $ 0.35 Unit Cost $ 1.00 $ 1.50 On Hand Inventory 25 15 Lead Time (weeks) 3 2 Scheduled Receipts 20 0 Backorders 0 0

Firm's Inventory Level and Inventory Turnover Ratio

Please help with the following finance-related problem. Please provide the answers in an Excel spreadsheet. Williams & Sons last year reported sales of $10 million and an inventory turnover ratio of 2. The company is now adopting a new inventory system. If the new system is able to reduce the firm's inventory level and incre

Inventory Control Importance in an Enterprise

1.Discuss the importance of inventory control with respect to supply and demand. 2.What benefit can tools such as ABC analysis and just-in-time controls provide for an organization? 3.How can an enterprise resource planning system assist a firm with improving its business operations?