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Inventory Management

Day to day Metrics versus traditional metrics, Linking Metrics

The CEO heard about your lunchtime discussion with the supervisors and managers when metrics were discussed. He would like you to help him prepare a PowerPoint presentation that he could use at the next board of directors meeting to link the day-to-day new metrics you suggested using to the bigger picture metrics that CEO's, CFO

Gemstone, Ltd.

Purchases budget - analytical: Gemstone, Ltd. is a retail jeweller. Most of the firm's business is in jewellery and watches. The firm's average gross profit ratio for jewellery and watches is 80% and 40%, respectively. The sales forecast for the next two months for each product category is as follows;

Information on Retailers

1.Why do retailers perform extensive inventories at the end of a fiscal year. Why do retailers mark down items for quick sale before the end of a budgeting period? Is this wise? 2. Implementing a merchandising plan is an eight-step process beginning with gathering information and ending with a re-evaluation process. What is t

Larsen Realty Corp & Chippewas Company

Please see attached. There are two problems, they are under sheet 1 and sheet 2. E9-7 (Relative Sales Value Method) Larsen Realty E8-9 (Periodic versus Perpetual Entries) Chippewas

Materials Requirements Planning

The CEO of the organization has declared "war" on excessive inventory. Operational people within the organization want more inventory available to produce the products for the customer. The financial analysts agree with the CEO. - Why are there 2 viewpoints, and why do they vary? - What are the drawbacks to excess inventory

Inventory Management as the Company Controller

A company's order fulfillment manager suggests that the company increase their inventory levels to make sure there is enough inventory to fulfill all customer orders. As the controller of the company, would you agree or disagree with the fulfillment managers suggestion? Why or why not? If you disagree, what alternatives woul

Larop Corporation: Costs

The following data (in thousands of dollars) have been taken from the accounting records of Larop Corporation for the just completed year. Sales......................................................................................... $870 Purchases of raw materials............................................................

Inventory Calculations: Kepler's Fudge Factory

Kepler's Fudge Factory had the following information available for the month of September: Beginning Ending Raw materials inventory $41,000 $21,000 Work in process inventory $26,000 $36,000 Finished-goods inventory $31,000 $21,000 Raw material purchased $98,000 Direct labor (2,000 hrs. @9)

Everglades Marine Company

The Everglades Marine Company has the followng inventory balances at the beginning of January: Raw Materials Inventory: $71,568 Work-in-Process Inventory: $109,788 Finished Goods Inventory: $92,757 During January, the Everglades Marine Company incurred $106,806 in overhead costs and $193,200 in direct labor cost

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

Direct Materials Used in Production

Your boss gave you the following info, compute direct materials used: Purchase of direct materials $6,400 Freight-in 200 Property taxes 900 Ending Inventory of direct materials 1,500 Beginning Inventory of direct materials 4,000

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

Annual cost of carrying inventories

A company places purchase orders to buy two week's supply at a time. Oscar Chen has joined as the director of finance and has passed an order which says that one month's supply should be purchase at a time. Which of the following is correct assuming all other variables remain unchanged? a) The annual cost of carrying inventor

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

Depth Inventory Management Analysis

One of the problems many companies face today is to what depth inventory should be. Basically, the question is: do we inventory major components, individual parts, smaller items? So, at some point, we would have to make a decision to keep things in inventory - or perhaps outsource to a JIT vendor. So, to what level do you th

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

Affects on Average Inventory Levels

Explain what should happen to the order quantity in an order point (Q,R) system, and the time between orders in a periodic review (P,T) system, as the fixed cost per order (S) increases relative to other cost parameters. Explain the effect this will have on average inventory levels.

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

Sprint Shoes, Inc. Inventory Control Exercise

See attached file. Sprint Shoes, Inc. had a beginning inventory of 9,000 units on January 1, 2007. The costs associated with the inventory were: Materials: $13 per unit Labor: $8 per unit Overhead: $6.10 per unit During 2007, the firm produced 42,500 units with the following costs: Material: $15.50 Labor: $7.80 pe

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