Purchase Solution

Inventory policy for Culton Hair Salon

Not what you're looking for?

Ask Custom Question

Culton Hair Salon sells an average of 20 bottles of hair conditioner weekly.There is a $25 cost to place an order with the distributor of the conditioner,and the conditioner costs the salon $2.50 per bottle.The annual holding cost rate is 18%,and the lead-time for delivery is one week.The salon desires a safety stock of five bottles and wishes to determine when an order should be placed and how many bottles it should order.

Purchase this Solution
Solution Summary

The solution explains desinging inventory policy in detail

Solution Preview

Hello

Please see the reponse below

Demand per week = 20 , assuming weekly demand is same for all the weeks, we calculate annula demand = weekly demand*number of weeks in a year ...

Purchase this Solution
Free BrainMass Quizzes
Introduction to Finance

This quiz test introductory finance topics.

Learning Lean

This quiz will help you understand the basic concepts of Lean.

Production and cost theory

Understanding production and cost phenomena will permit firms to make wise decisions concerning output volume.

Income Streams

In our ever changing world, developing secondary income streams is becoming more important. This quiz provides a brief overview of income sources.

Basics of corporate finance

These questions will test you on your knowledge of finance.

View More Free Quizzes
Related BrainMass Solutions

  • Different organizations and products

    SpaID=130)- $55 High-end hair cut (trendy salon): Trio Salon (http://www.triosalon.com/services.html)- Starts from $55 for the simplest of bangs and children's cuts to $150 for the trendiest cut The rationale for this difference is not necessarily

  • SWOTT blue collar customers

    The salon will have all of the services an upscale salon would have but the costs for services would be affordable to the blue collar customers.

  • Calculating annual rate of return

    Mane Event is considering opening a new hair salon in Pompador, California. The cost of bulding a new salon is $300,000. A new salon will normally generate annual revenues of $70,000, with annual expenses (including depreciations) of $40,000.

  • Victoria Hair Salon - Throughout Contribution

    578654 Victoria Hair Salon - Throughout Contribution Throughput contribution. Victoria Hair Salon styles hair in three operations—washing, cutting/setting, and drying—and charges $25 per styling. (Each styling is one "unit.")

  • Calculating the proceeds of a discounted note

    180474 Determine proceeds assuming the note is discounted at 4% One July 19, Noras salon issued a 90-day note with face value of $40,000 to Charah hair products for merchandise inventory.

  • Title VII Discrimination at Mary's Hair Salon

    Do a little more research and see if Title II would be a better fit for you, as it was in the VA case. The solution discusses Title VII discrimination at a hair salon that has six employees and is owned by Mary. Includes two reference links.

  • Service marketing is different from product marketing

    For example, if your tinfoil is 10 times stronger than the competitor or your bread has 25% less sodium. In service marketing, the "product" is intangible. An example of a service is like a hair cut in a salon.

  • Recognition policy

    Salon D' Luce Scenario, LDR/301 Thank you for using Brainmass. The following posting helps with problems about motivation in organizations.

  • Product Comparison for Customer Requirements

    ) Hair salon q) Grocery store Choose one of the products to be your organization's product.

View More Related Solutions