3. Fortnex is a company that assembles small household appliances including coffeemakers, toasters, and food mixers. The parent company of Fortnex has been concernedabout the rising product cost of the finished products, which has led to reduced profitmargins. One of the demands of the parent company has been to review the inventorymanagement practices of Fortnex. Two areas which Fortnex is currently investigating areeconomic order quantity EOQ and ABC analysis. Perform the following.(i)At present the company purchases copper wire for a certain appliance undereconomic order quantities based on the information given in Table 3-1. Thesupplier of copper wire is proposing a discount of 5% of unit price if Fortnexpurchases in lot sizes of 1000 kg. rather than the calculated EOQ. Determine ifFortnex should take advantage of the price discount. Justify your response.For a particular series of referenced products, the number of units used a year,and the unit cost are as shown in Table 3-2. Develop an ABC analysis and plot aPareto chart to help Fortnex company to which items to give maximum and leastattention.(ii) Annual demand forcopper wire, kgPrice per kg, OMROrdering cost,OMR/orderCarrying cost, % ofpriceProduct referenceQ4587G458G235Z5892B7894C1289Table 3-150375700875Table 3-2Units a year110260Unit Cost(OMR/unit)258.420.42.41.10.362.451020%12,100Total Cost(OMR)2,7502,1841,020900770315

Given data: As per the question, the supplier is giving the discount = 5% on the unit price (if the…

Answered: 3. Fortnex is a company that assembles…

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter2: Introduction To Spreadsheet Modeling

Section: Chapter Questions

Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...

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Inventory Management You are the store manager at a local branch of DigiLife, a large electronics retail chain. A new version of a popular consumer electronics device called the Amulet is coming out this year. It is your job to sell as many Amulets as you can while minimizing your costs in order to maximize your store's profits. Your Goal Earn $1,000,000 in net profits of Amulet sales.
The following lots of a particular commodity were available for sale during the year Beginning inventory 7 units at $49.00 First purchase 18 units at $54.00 Second purchase 25 units at $59.00 Third purchase 14 units at $59.00 The firm uses the periodic system, and there are 23 units of the commodity on hand at the end of the year. What is the amount of inventory at the end of the year according to the FIFO method? Select the correct answer. $1,127.00 $1,357.00 $3,616.00 $3,593.00
19. SPRAY-PAINT INVENTORY The Graphic Hobby House made purchases of assorted colors of spray paint during the year as follows. Beginning inventory 200 cans at $2.20 March 400 cans at $2.40 May 700 cans at $2.00 August 500 cans at $2.30 November 300 cans at S2.60 At the end of the year, they had 450 cans of spray paint in stock. (a) Find the inventory value using the weighted-average method. (b) Find the inventory value using the FIFO method. (c) Find the inventory value using the LIFO method.
Green Gardens' owner has asked your advice about a possible problem at his business. Over the last 6 months the large-sized lawn and garden inventory (ie, tables, chairs, planters, etc.) has appeared to be short. The inventory records that employees use to determine what is on hand show that more inventory is available than can actually be located. This has cause frustration and mis-trust in the inventory records for the sales employees. The owner realizes that the problem is bigger than just frustrated employees. He is afraid that inventory is being stolen, a problem he didn't think possible given that these are large items that are not easily moved. Requirements: Provide the owner with two internal controls that he could implement to reduce the likelihood of theft of the lawn and garden inventory.
1) Assume that you are a manager of one of the hotels in the UAE. As you know, UAE has an excellent weather from October to April, so the room occupancy rate is high during this period. However, the occupancy rate becomes low during the period from May to September due to the hot weather and this happens every year. Based on the above information: 1- What is type of demand state that you face in this situation? Explain it? 2- And explain how can you manage this demand state in detail? 2) In this course, you were requested to provide relevant recommendations to intensive growth strategies for a selected hotel of your choice in the UAE, write a report to explain each one of them and show their relevant recommendations as follows: 1- Market penetration strategy (explain and write recommendations) 2- Market development strategy (explain and write recommendations) 3- Product development strategy (explain and write recommendations) 4- Related diversification strategy (explain and write…
Ram Roy's firm has developed the following supply, demand, cost, and inventory data Period 1 2 3 Regular Time 30 30 40 Supply Available Overtime Subcontract 5 15 15 15 5 5 Demand Forecast 40 20 units $100 $150 $200 $6 45 55 Initial inventory Regular-time cost per unit Overtime cost per unit Subcontract cost per unit Carrying cost per unit per month Assume that the initial inventory has no holding cost in the first period and backorders are not permitted Allocating production capacity to meet demand at a minimum cost using the transportation method, the total cost is $ (enter your response as a whole number)
As with other products, Fisher-Price faces the decision of how many Weather Teddy units to order for the comingholiday season. Members of the management team suggested order quantities of 15,000, 18,000, 24,000, or28,000 units. The wide range of order quantities suggested indicates considerable disagreement concerning themarket potential. The product management team asks you for an analysis of the stock-out probabilities forvarious order quantities, an estimate of the profit potential, and to help make an order quantity recommendation.Fisher-Price expects to sell Weather Teddy for $24 based on a cost of $16 per unit. If inventory remains afterthe holiday season, Fisher-Price will sell all surplus inventory for $5 per unit. After reviewing the sales historyof similar products, Fisher-Price’s senior sales forecaster predicted an expected demand of 20,000 units with a.95 probability that demand would be between 10,000 units and 30,000 units. Question: One of Fisher-Price’s managers felt…
What is the distinction between simulated and anticipated average demand:
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Becky Shelton, a teacher at kemp middle school is in charge of ordering the T-shirts to be sold for the school's annual fund-raising project the t-shirts are printed with a special kemp school logo. In some years the supply of T-shirts has been insufficient to satisfy the number of sales orders. In other years, T-shirts have been left over. excess T-shirts are normally donated to some charitable organization. T-shirts cost the school $7 each and are normally sold for $14 each. Ms Shelton has decided to order 790 shirts. Required 1) if the school receives actual sales orders for 715 shirts, what amount of profit will the school earn?what is the cost of waste due to excess inventory? 2) If the school receives actual sales orders for 830 shits, what amount of profit will the school earn? What amount of opportunity cost will the school incur? a) Profit $1,050 waste due to excess inventory b) Profit opportunity cost
A clothing manufacturing company requires raw materials for 8 consecutive weeks as follows: 30, 40, 50, 35, 60, 30, 40, and 30 units with a one-time order cost of $50,000 and a storage fee of $500 per unit/week. From these data calculate the total cost of procurement using:a. Lot For Lot (LFL) Methodb. Economic Order Quantity (EOQ) Methodc. Period Order Quantity (POQ) Method Using this table format: Week 1 2 3 4 5 6 7 8 Gross requirements Schedule receipts Projected on hand Net requirements Planned order receipts Planned order releases

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