A production line is to run level production strategy. The sales forecast is shown below. Calculate the expected period-end inventory, if theopening inventory is 500 units. All periods are having same working days.Period345Forecast700700110016001100800Planned production100010001000100010001000Planned500Inventory

Question is based on the production budgeting, where cost department forcast the sales and…

Answered: A production line is to run level…

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

See similar textbooks

Similar questions

can you help me figure out the answer to a.
1. Projected sales for Sommers, Inc., for next year and beginning and ending inventory data ar as follows: Sales Beginning inventory Desired ending inventory The selling price is $40 per unit. Each unit requires four pounds of material which costs $6 per pound. The beginning inventory of raw materials is 12,000 pounds. The company wants to have 3,000 pounds of material in inventory at the end of the year. Required: 50,000 units 4,000 units 8,000 units Sales budget Production budget Direct material budget Purchases budget
Please refer to the attached image. Here is the question: Using the exponential smothing model with an alpha of 0.2 and a smoothed forecast for period 1 of 350, what is the forecast for period 3?
22.Store B orders on a weekly basis. Its weekly demand is 50 units with a standard deviation of five units. The holding cost is $10 per unit per week and a 0.99 in-stock probability is desired. a) What is Store B's weekly inventory holding cost if lead time is two weeks? b) What is Store B's weekly inventory holding cost per unit?
Ma3. Please give only typed answer.
2.7 A company wants to develop a level production plan for a family of products. The open- ing inventory is 100 units, and an increase to 160 units is expected by the end of the plan. The demand for each period is given in what follows. How much should the company produce each period? What will be the ending inventories in each period? All periods have the same number of working days. Period 1 2 3 4 5 6 Total Forecast Demand 100 120 130 140 120 110 Planned Production Planned 100 Inventory
9- the daily demand for a product obeys a normal behavior with a mean of 60 units and a standard deviation of 10 units. The cost per order is $ 12, the cost to hold the inventory is $0.60. We consider 365 days of the year and work at a 95% satisfaction level (Z = 1.64). Also, the delivery time is known to be 5 days. What is the safety inventory? a) 936 b) 300 c) 17 d) 317 10- What is the optimal order quantity? a) 17 b) 936 c) 300 d) 317 12- At what point should a new order be placed? a) 317 b) 17 c) 300 d) 936
None
Production and sales estimates for June for Cardinal Co. are as follows: Estimated inventory (units), June 1 20,000 Desired inventory (units), June 30 19,000 Expected sales volume (units): Territory X 7,000 Territory Y 4,000 Territory Z 5,500 Unit sales price $20 The number of units expected to be manufactured in June is a. 12,500 units b. 13,500 units c. 11,000 units d. 15,500 units
beginning inventory = 2000 unitsend of year total needs to be 500 units forecast by quarter 1 : 6000 2: 5500 3: 5000 4: 6500 what should the quarterly production be to end at 500?
In an economy, firms tend to hold 25% of output as inventory.i. If in period 1, total output is 200 units, calculate the stock of inventory inthat period.ii. If production increases by 50% in the following period, calculate inventoryinvestment over the two periods.
Activities/Assessments: Activity 9 Solve the following EOQ model problems: 1. Each year, Y Company purchases 20,000 units of an item that costs P 640 per unit. The cost of placing an order is P 480, and the cost to hold the item in inventory for one year is P 150. a. Determine the EOQ. b. What is the average inventory level, assuming that the minimum inventory level is zero? c. Determine the total annual ordering cost and the total annual holding cost for the item if the EOQ is used. 2. A toy manufacturer uses approximately 32,000 silicon chips annually. The chips are used at a steady rate during the 240 days the plant operates. Annual holding cost is P27 per chip and ordering cost is P1,080. Lead time = 1 week. a. Find the EOQ. b. Find the reorder point. c. What would be your ordering policy for this item? d. Find the total annual cost of ordering and carrying silicon chips. 3. A large bakery buys sugar in 50-kg bags. The bakery uses an average of 1,344 bags a year. Preparing an order…

SEE MORE QUESTIONS

Recommended textbooks for you

Essentials Of Investments

Finance

ISBN:

9781260013924

Author:

Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:

Mcgraw-hill Education,

FUNDAMENTALS OF CORPORATE FINANCE

Finance

ISBN:

9781260013962

Author:

BREALEY

Publisher:

RENT MCG

Financial Management: Theory & Practice

Finance

ISBN:

9781337909730

Author:

Brigham

Publisher:

Cengage

Essentials Of Investments

Finance

ISBN:

9781260013924

Author:

Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:

Mcgraw-hill Education,

FUNDAMENTALS OF CORPORATE FINANCE

Finance

ISBN:

9781260013962

Author:

BREALEY

Publisher:

RENT MCG

Financial Management: Theory & Practice

Finance

ISBN:

9781337909730

Author:

Brigham

Publisher:

Cengage

Foundations Of Finance

Finance

ISBN:

9780134897264

Author:

KEOWN, Arthur J., Martin, John D., PETTY, J. William

Publisher:

Pearson,

Fundamentals of Financial Management (MindTap Cou…

Finance

ISBN:

9781337395250

Author:

Eugene F. Brigham, Joel F. Houston

Publisher:

Cengage Learning

Corporate Finance (The Mcgraw-hill/Irwin Series i…

Finance

ISBN:

9780077861759

Author:

Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor

Publisher:

McGraw-Hill Education

SEE MORE TEXTBOOKS