Guys on Friday i have a midterm from this lesson and i have to find this question's answers to help me for the exam..I hope we can find the answers together..There are 8 questions: 4 comment question and 4 problem..First 4 questions are up to our logic and more important than the last 4 questions
First 4 question..
Question 1: Why is inventory important to the efficient and effective management of a firm ?
Question 2: How does uncertainty in demand and performance cycle affect inventory level ?
Question 3: What may be the implications of shortages of finished goods inventory, and the shortages of raw materials inventory ?
Question 4: In how many ways a company may overcome the shortages ?
The remaining questions are problems..
Problem 1: Clean House Retail, performs a daily sales of 50 soap bars everyday. The purchasing cost of bars is $1.10 per bar. Clean House have a habit of making it's orders in quantities equal to its 15 days requirements. Besides, it always have a safety stock to meet 2 days requirements. Based on this information, calculate the average cost of soap bar inventory of Clean House Retail..
Problem 2: Healthy Foods is a retailer. Among many other products, it also sells canned orange juice. The unit cost of canned orange juice is $2 per can. The average daily sales is 20 cans per day. The time required to receive the juices from the manufacturer is 5 days from the date or order. The ordering cost is $20 per order and the annual inventory carrying cost is %30. The demand is very stable and the delivery is highly reliable, therefore healthy Food does need any safety stock. Based on these information;
a) What is the time to make a replenishment order for orange juice (Reorder Point) ?
b)What is the Economic Order Quantity for orange juices?
c) What is the average inventory cost ?
Problem 3: Mr. Stan Bushfield, distribution manager of Kitchenware Inc, must determine when to resupply his stock of spatulas. The company experiences a daily demand of 400 spatulas. The average lenght of the performance cycle for spatulas is 14 days. Mr. Bushfield requires that 500 spatulas be retained as safety stock to deal with uncertainties. Use the simple re-order point logic to determine the order quantity for spatulas.
Problem 4: Mr. Jones manages the warehouse inventory for Athletics, a distributor of sports watches. From his experience, Mr. Jones knows that the P-5 model jogging watch has an average daily demand of 100 units and a performance cycle of 8 days. Mr Jones requires no buffer stock. Find the average inventory level of P-5 model watches.
First 4 question..
Question 1: Why is inventory important to the efficient and effective management of a firm ?
Question 2: How does uncertainty in demand and performance cycle affect inventory level ?
Question 3: What may be the implications of shortages of finished goods inventory, and the shortages of raw materials inventory ?
Question 4: In how many ways a company may overcome the shortages ?
The remaining questions are problems..
Problem 1: Clean House Retail, performs a daily sales of 50 soap bars everyday. The purchasing cost of bars is $1.10 per bar. Clean House have a habit of making it's orders in quantities equal to its 15 days requirements. Besides, it always have a safety stock to meet 2 days requirements. Based on this information, calculate the average cost of soap bar inventory of Clean House Retail..
Problem 2: Healthy Foods is a retailer. Among many other products, it also sells canned orange juice. The unit cost of canned orange juice is $2 per can. The average daily sales is 20 cans per day. The time required to receive the juices from the manufacturer is 5 days from the date or order. The ordering cost is $20 per order and the annual inventory carrying cost is %30. The demand is very stable and the delivery is highly reliable, therefore healthy Food does need any safety stock. Based on these information;
a) What is the time to make a replenishment order for orange juice (Reorder Point) ?
b)What is the Economic Order Quantity for orange juices?
c) What is the average inventory cost ?
Problem 3: Mr. Stan Bushfield, distribution manager of Kitchenware Inc, must determine when to resupply his stock of spatulas. The company experiences a daily demand of 400 spatulas. The average lenght of the performance cycle for spatulas is 14 days. Mr. Bushfield requires that 500 spatulas be retained as safety stock to deal with uncertainties. Use the simple re-order point logic to determine the order quantity for spatulas.
Problem 4: Mr. Jones manages the warehouse inventory for Athletics, a distributor of sports watches. From his experience, Mr. Jones knows that the P-5 model jogging watch has an average daily demand of 100 units and a performance cycle of 8 days. Mr Jones requires no buffer stock. Find the average inventory level of P-5 model watches.
