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Inventory Management

Inventory problem: Quantity discount model

As inventory manager, you must decide on the order quantity for an item that has an annual demand of 2,000 units. Placing an order costs you $20 each time. Your annual holding cost, expressed as a percentage of average inventory value, is 20%. Your supplier has provided the following price schedule: minimum order quantity

Suppose the actual demand is 60 bags but that ordering cost are cut to only $6 by using the internet to automate order placing. However the buyer does not tell anyone, and the EOQ is not adjusted to reflect this reduction in S. How much higher will total costs be, compared to what they could be if EOQ were adjusted?

Sam's Cat Hotel operates 52 weeks per year,6 days per week and uses a continuous review inventory system. It purchases kitty litter for $11.70 per bag. The following information is available about these bags. Demand= 90bags/week Order COst= $54/order Annual holding cost= 27% of cost desired cycle-service level = 80% lead ti

Use the production model for inventory management

Frank's machine shop operates 250 days per year. Frank sells 5,000 units per year of his most popular item, a specialty gear. The setup cost for this gear is $100 and the monthly unit cost of holding inventory is 1% of the production cost per unit, which is $50. The lead time is 10 days. When the gear is being produced, the shop

Uncollectible Accounts

1) If the Allowance for uncollectible Accounts has a credit balance of $900 at the end of the current year(prior to adjustment). An analysis of the accounts in the customers Ledger indicates uncollectible accounts of $16,000. The adjusting entry would require a debit to: A) uncollectible account expense for $15,100 B) unco

This is a graduate operations management question

Assume that Product Z is made of two units of A and four units of B. A is made of three units of C and four D. D is made of two units of E. Lead times for purchase or fabrication of each unit to final assembly are: Z takes two weeks; A, B, C, and D take one week each; and E takes three weeks. Fifty units are required in Period 1

Discussing Quality Management and Continuous Improvement

Describe a JIT principle used at a past or present workplace or one with which you are personally familiar. Focus on the key areas of JIT. Have the results been positive or negative? Detail what improvements or changes would result in a more effective program. Objective: Evaluate the quality control tools used to analyze and

Piggly Wiggly Grocery Store/Muskego Lakes Country Club Pro Shop

Piggly Wiggly Grocery Store 1. What is the physical flow of merchandise into the store, and what documents are used in connection with this flow? 2. What documents are prepared when merchandise is sold? 3. Does the store keep perpetual inventory records? If so, does it keep the records in units only, or does it keep t

Grocery Store Inner Workings

1. What is the physical flow of merchandise into the store, and what documents are used in connection with this flow? 2. What documents are prepared when merchandise is sold? 3. How are financial statements generated for this store? 4. What method does the company use to cost its inventory for financial statements?

Retail Questions

Retail Research Activity Imagine if you had a local retail business-a grocery, clothing, book, music, or appliance store-and answer the following questions: ? What is the physical flow of merchandise into the store, and what documents are used in connection with this flow? ? What documents are prepared when merchandise i

Budgets

Use any data to answer the following question: Carter Lumber sells lumber and general building supplies to building contractors in a medium-sized town in Montana. Data regarding the store's operations follow: ? Sales are budgeted at $XXX for November, $YYY for December, and $ZZZ for January. ? Collections are expected to be

Accounting Exercises

(See attached file for full problem description) --- BRIEF EXERCISE 1-1 Classifying manufacturing Costs (LO1) Your required bout, INC., assembles custom built sailboats form components supplied by various manufacturers. The company is very small and its assembly shop and retail store are housed in a Gig Harbor, Washin

Answer the following questions in detail

1. In the +, -, 0 set of statements, I said assume the firm is a "going concern.' What is meant by the term "going concern?" 2. Assuming a current ratio of more than 1:1, what causes the current ratio to increase? 3. We all know what "window dressing is," from the +, -, 0 problem explain how a firm can "window dress'

Operations Research & Statistics

Standard Pump Corporation recently won a $14 million contract with the U.S. Navy to supply 2000 custom-designed submersible pumps over a period of four months. The contract calls for the delivery of 200 pumps at the end of May, 600 pumps at the end of June, 600 pumps at the end of July, and 600 pumps at the end of August. Standa

Inventory Management in Excel

Using Excel, Determine the following: The Western Jeans Company purchases denim from Cumberland Textile Mills. The Western Jeans Company uses 35,000 yards of denim per year to make jeans. The cost of ordering denim from the textile company is $500 per order. It costs Western $0.35 per yard annually to hold a yard of denim

Hayes Electronics: Inventory Management

Hayes Electronics assumes with certainty that the ordering cost is $450 per order and the inventory carrying cost is $170 per unit per year. However, the inventory model parameters are frequently only estimates that are subject to some degree of uncertainty. Consider four cases of variation in the model parameters as follows:

Cash Management Calculations

Please help me study by answering the following: Wedbing Corp has an opportunity to embark on an extensive one-year project requiring a total outlay of $ 10,000,000 over the course of the undertaking. Their cost of capital is only 5.75% at this time and should remain stable throughout the duration of the project. Wedbing has

Inventory Management

A store has collected the following information on one of its products (10 pts): Demand = 10,000 units/year Standard deviation of weekly demand = 25 units Ordering costs = $30/order Holding costs = $4/unit/year Cycle-service level = 95% (z for 90% = 1.28) Lead time = 2 weeks Number of weeks per year = 5

Materials Requirement Planning

2. One unit of A is made of two units of B, three units of C, and two units of D. B is composed of one unit of E and two units of F. C is made of two units of F and on unit of D. E is made of two units of D. Items, A, C, D, and F have one-week lead times; B and E have lead times of two weeks. Lot-for-lot (L4L) lot sizing is used

Healthcare Organizations and Inventory Control

What are the financial problems which poor inventory management can cause in a HCO? What are the appropriate solutions to resolve or prevent such problems? In your response, please reference the material from McLean, Robert A. (2003). Financial Management in Health Care Organizations (2nd ed.). Albany, NY: Delmar Publishers.

A company produces and stocks computer printers...

(See attached file for full problem description) --- A company produces and stocks computer printers in its finished-goods warehouse. These 'demand during lead time' (DDLT) historical data are believed to be representative of future demand for one printer model: Actual DDLT Frequency Actual DDLT Frequency 0-29 0 70-79 0

Advanced topics in accounting

Aretail company begins operations late in 2000 by purchasing $600,000of merchandise. There are no sales in 2000. During 2001 additional merchandise of $3,000,000 is purchased .Operating expenses(excluding management bonuses)are $400,000 and sales are $600,000. The management compensation agreement provides for incentive bonuses

Capital Management

Could someone just check our figures? We were confused on using the average inventory for the inventory conversion period. All we had was a value for inventories.

Operation management question

Of the inventory items listed below, which would probably be class A items if an associate organzied the list by ABC analysis? Item # Quantity per year Unit Price 109 6 $1,000.00 083

Dunn's Building Supplies

All sales of Dunn's Building Supplies (DBS) are made on credit. Sales are billed twice monthly on the tenth of the month for the last half of the prior month's sales and on the twentieth of the month for the first half of the current month's sales. The terms of all sales are 2/10, net 30. Based on past experience, the collecti

Inventory Fraud

You keep looking over the financials to see where your analysis is wrong- but you can't see any problems-it just looks like inventory is getting larger and larger, but you know that you haven't seen growth in the levels of inventory that the financials seem to be indicating. You start to wonder, as the controller of the company

P12-2A

Scott Corporation, a furniture store, was formed on January 1, 20x8, when Scott issued its no-par common stock for $300,000. Early in January, Scott made the following cash payments: A. $150,000 for equipment B. $120,000 for inventory (1,000 pieces of furniture) C. $20,000 for 20x8 rent on a store building In February,

Study questions

True/False 1. The recording process becomes more efficient and informative if all transactions are recorded in one account. 2. Under the double-entry system, revenues must always equal expenses. 3. A journal is also known as a book of original entry. 4. A trial balance does not prove that all transactions have been re

The Clash Between a Parent and Subsidiary Company

"A" Company, the new parent company of "B" Company, is a large multinational conglomerate. It is an extremely financially well-run company, with an emphasis on short-term, quarterly results. In fact, it is Walden's key value proposition to its stockholders that each quarter's sales and pretax profits will be greater than the pri

Premium Coupons

On 1/1/04, Company began including three coupons in each box of baseball food it sells. In exhange for 20 coupons and $10, customers will receive a porcelain baseball figurine. Each figurine costs Company $25. Company estimates that 20% of the coupons will not be redeemed. Events relating to the coupon promotion during 2004