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After a merger, Old Framkranz found himself the only inventory clerk left at Allied Breakwater Company (ABC). The merger had left ABC with only 10 parts in inventory, and he'd been told to manage them as effectively as possible. Each part was to be reviewed once a week. (ABC worked a very exhausting five-day week.) Framkranz knew inventory carrying cost was 20 percent per dollar of cost per year. He also knew, to really manage a part's inventory well, he would have to spend a full day on the review, but he could do a reasonably good job in half a day. Even the most cursory review would require one-quarter day per part, however. Files for the 10 parts contain the following information. How should Framkranz schedule the review of the parts?

After a merger, Old Framkranz found himself the only inventory clerk left at Allied Breakwater Company (ABC). The merger had left ABC with only 10 parts in inventory, and he'd been told to manage them as effectively as possible. Each part was to be reviewed once a week. (ABC worked a very exhausting five-day week.) Framkranz knew inventory carrying cost was 20 percent per dollar of cost per year. He also knew, to really manage a part's inventory well, he would have to spend a full day on the review, but he could do a reasonably good job in half a day. Even the most cursory review would require one-quarter day per part, however. Files for the 10 parts contain the following information. How should Framkranz schedule the review of the parts?

Practical Management Science
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
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6. After a merger, Old Framkranz found himself the only inventory clerk left at Allied Breakwater Company (ABC). The merger had left ABC with only 10 parts in inventory, and he'd been told to manage them as effectively as possible. Each part was to be reviewed once a week. (ABC worked a very exhausting five-day week.) Framkranz knew inventory carrying cost was 20 percent per dollar of cost per year. He also knew, to really manage a part's inventory well, he would have to spend a full day on the review, but he could do a reasonably good job in half a day. Even the most cursory review would require one-quarter day per part, however. Files for the 10 parts contain the following information. How should Framkranz schedule the review of the parts? Part No. Vendor 1 234567890 10 ABBC ABLACA с А с А с А Unit Shipping Cost per Annual Cost/Unit Order ($) Cost ($) Usage 0.20 1.00 0.25 3.00 10.00 7.00 0.50 5.00 20.00 2.00 0 0.10 0.10 0.25 0 0.10 0.25 0 0.30 0 10 20 15 15 10 15 20 10 20 10 1,000 10 12 100 300 2 10 400 2 200 Reorder Order Point Quantity 50 1 2 20 15 1 2 20 1 10 0455155713 39 400 95 100
Transcribed Image Text:6. After a merger, Old Framkranz found himself the only inventory clerk left at Allied Breakwater Company (ABC). The merger had left ABC with only 10 parts in inventory, and he'd been told to manage them as effectively as possible. Each part was to be reviewed once a week. (ABC worked a very exhausting five-day week.) Framkranz knew inventory carrying cost was 20 percent per dollar of cost per year. He also knew, to really manage a part's inventory well, he would have to spend a full day on the review, but he could do a reasonably good job in half a day. Even the most cursory review would require one-quarter day per part, however. Files for the 10 parts contain the following information. How should Framkranz schedule the review of the parts? Part No. Vendor 1 234567890 10 ABBC ABLACA с А с А с А Unit Shipping Cost per Annual Cost/Unit Order ($) Cost ($) Usage 0.20 1.00 0.25 3.00 10.00 7.00 0.50 5.00 20.00 2.00 0 0.10 0.10 0.25 0 0.10 0.25 0 0.30 0 10 20 15 15 10 15 20 10 20 10 1,000 10 12 100 300 2 10 400 2 200 Reorder Order Point Quantity 50 1 2 20 15 1 2 20 1 10 0455155713 39 400 95 100
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