Boreki Enterprise has the following 10 items in inventory. Theodore Boreki asks you, a recent OM graduate, to divide these items into ABC classifications. Fill in the blanks and then answer the following questions. (Round dollar volume to the nearest whole number andpercentage of dollar volume to two decimal places.)ItemA2B8C7D1E9F3G2H215J8Item F3 should be classified asAnnual Demand Cost/Unit50030040001215004535202501500206552010003420060010002500Dollar % of Total DollarVolumeVolume48,00067,50020,000300,00012,00012,500For the following two questions consider only items A2 and F3 for relative classification (these are some of the items for which you computed the metrics).Based on the percentages of dollar volume, item A2 should be classified as7.029.872.9243.851.751,83

Inventory management is the aspect of production management of an organization including storing,…

Answered: Boreki Enterprise has the following 10…

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...

See similar textbooks

Similar questions

Discuss with examples the two methods of inventory control. Which method do you think is better for a retail store with several items of small value?
No inventory manager likes to run out of stock. But for blood services, such as the UK’s National Blood Service (NBS) the consequences of running out of stock can be particularly serious. Many people owe their lives to transfusions that were made possible by the efficientmanagement of blood, stocked in a supply network that stretches from donation centres through to hospital blood banks. The NBS supply chain has three main stages:1. Collection, which involves recruiting and retaining blood donors, encouraging them to attend donor sessions (at mobile or fixed locations) and transporting the donated blood to their local blood centre.2. Processing, which breaks blood down into its constituent parts (red cells, platelets and plasma) as well over twenty other blood-based ‘products’.3. Distribution, which transports blood from blood centres to hospitals in response to both routine and emergency requests. Of the Service’s 200,000 deliveries a year, about 2,500 are emergency deliveries…
Use the information below for the following questions: Knights Corporation also needs to determine the proper reorder point and safety stock level. Annual Demand = 15000 gallons Lead Time = 15 days Standard deviation of lead time = 3 days Standard deviation of demand = 10 gallons Service Level = 96% (Z score of 1.75 or 1.76) Open days per year = 360 days 1. What is the reorder point? (keep two decimal places through your work, round your final answer up to the next highest whole number) 2.What is the safety stock? (keep two decimal places through your work, round your final answer up to the next highest whole number) 3. If the service level increased to 99% (Z score of 2.32 or 2.33), what would be the new safety stock? (keep two decimal places through your work, round your final answer up to the next highest whole number)
Your company has the following items in inventory: Unit Cost $9 $90 $6 Item A B с D E F G H Annual Demand 1200 100 4500 400 35 250 1000 100 $150 $2000 $120 $90 $75 a) What is the annual dollar volume for all items b) Perform an ABC analysis on the data. Which are the A items, the B items and the C item: c) Why is it desirable to classify items into groups, as the ABC classification scheme does? d) Define and discuss the term "productivity" with help of productivity equation.
Please show work so I can understand it. Given this information: •Expected demand during lead time = 800 units • Standard deviation of lead time demand = 40 units Assuming that lead time demand is distributed normally. The risk of stockout is 5 percent during lead time (a) What amount of safety stock is appropriate? (b) Calculate ROP
Inventory Management is a crucial element in a firm which has to be managed in an effective and efficient manner. Many companies use inventory for many purposes in their varying activities which are relevant to survive in competitive business environments. Explain the importance of knowing dependent and independent demand models to companies. In what ways are discrete stocking levels suitable to a company and why should this be done by companies? Justify citing examples.
IL Data related to the inventories of Metro Supply are presented below: 困 Surgical Equipment $ 260 170 240 Surgical Supplies $ 120 Rehab Rehab Selling price Cost Equipment S 340 Supplies $ 165 90 250 235 162 Replacement cost Costs to sell Normal gross profit ratio 80 158 30 25 10 30% 30% 30% 20% *Show your computation! If not, no credit A) In applying the lower of cost or market rule, the inventory of surgical equipment would be valued at: B) In applying the lower of cost or market rule, the inventory of surgical supplies would be valued at: C) In applying the lower of cost or market rule, the inventory of rehab equipment would be valued at: D) In applying the lower of cost or market rule, the inventory of rehab supplies would be valued at:
Given the information below, conduct an ABC analysis and determine which items should be classified as A, B, and C. Which items do you suggest the firm keep the tightest control over? Explain. Item Part Number Item Cost Quantity In Stock 142-AZ $546.00 318 4392-GF $45.00 1250 86935-ES $15.35 3546 173-DC $653.00 1876 999-BA $199.00 526 7846-NM $23.00 973 2765-OP $385.00 790 103-VX $12.50 4875 2648-YT $16.75 5185
please show work in excel The New Haven Foundation gave a grant to the Affordable Computers Co.(ACC) to manufacture low cost computers for children in developing countries. ACC needs 3000 memory chips per month for use in producing these hardware. The ordering cost is 12 dollars, and holding cost is 0.3 dollars per chip per year. a) What is the economic order quantity for the memory chips? b) Based on your answer to part (a), what would be the time between orders? (Hint: Q/D)
Joe Henry's machine shop uses 2,530 brackets during the course of a year. These brackets are purchased from a supplier 90 miles away. The following information is known about the brackets: Annual demand 2,530 Holding cost per bracket per year $1.65 Order cost per order $18.25 Lead time 2 days Working days per year 250 Part 2 a) What is the EOQ? enter your response here units (round your response to two decimal places). Part 3 b) What is the average inventory if the EOQ is used? enter your response here units (round your response to two decimal places). What would be the annual inventory holding cost? $enter your response here (round your response to two decimal places). Part 4 c) Given the EOQ, how many orders will be made annually? enter your response here orders (round your response to two decimal places). What would be the annual order cost? $enter your response here (round…
www.www A toy manufacturer uses approximately 40000 silicon chips annually. The chips are used at a steady rate during 350 working days per year. The annual holding cost is $4 per chip, ordering cost is $145, and lead time is 5 days. Determine the annual cost saving if company uses optimal EOQ (part a) instead of current order quantity of 3000 units (Round your answer to 1 decimal places)
Discuss what is meant by ABC analysis of inventory.Name several measures that can determine ABCstatus

SEE MORE QUESTIONS

Recommended textbooks for you

Practical Management Science

Operations Management

ISBN:

9781337406659

Author:

WINSTON, Wayne L.

Publisher:

Cengage,

Operations Management

ISBN:

9781259667473

Author:

William J Stevenson

Publisher:

McGraw-Hill Education

Operations and Supply Chain Management (Mcgraw-hi…

Operations Management

ISBN:

9781259666100

Author:

F. Robert Jacobs, Richard B Chase

Publisher:

McGraw-Hill Education

Practical Management Science

Operations Management

ISBN:

9781337406659

Author:

WINSTON, Wayne L.

Publisher:

Cengage,

Operations Management

ISBN:

9781259667473

Author:

William J Stevenson

Publisher:

McGraw-Hill Education

Operations and Supply Chain Management (Mcgraw-hi…

Operations Management

ISBN:

9781259666100

Author:

F. Robert Jacobs, Richard B Chase

Publisher:

McGraw-Hill Education

Business in Action

Operations Management

ISBN:

9780135198100

Author:

BOVEE

Publisher:

PEARSON CO

Purchasing and Supply Chain Management

Operations Management

ISBN:

9781285869681

Author:

Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson

Publisher:

Cengage Learning

Production and Operations Analysis, Seventh Editi…

Operations Management

ISBN:

9781478623069

Author:

Steven Nahmias, Tava Lennon Olsen

Publisher:

Waveland Press, Inc.

SEE MORE TEXTBOOKS