10.3. The Ashton Furniture Company manufactures coffee tablesand chests of drawers. Last year the company's cost of goods sold was$3,700,000, and it carried inventory of oak, pine, stains, joiners, andbrass fixtures, work-in-process of furniture frames, drawers and woodpanels, and finished chests and coffee tables. Its average inventorylevels for a 52-week business year were as follows:Raw MaterialsAverage InventoryUnit CostOak8000$6.00Pine45004.00 Brass fixtures12008.00Stains30002.00Joiners9001.00Work-in-ProcessFrames200$30Drawers40010Panels60050Chests120110Tables9090Finished Goods300$500Chests200350Coffee tablesDetermine the number of inventory turns and the days of supply forthe furniture company.

Inventory is the raw materials that is used to produce goods that are available for sale. The three…

Answered: etermine the number of inventory turns…

Business

Operations Management

etermine the number of inventory turns and the days of supply e furniture company.

Purchasing and Supply Chain Management

6th Edition

ISBN:9781285869681

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

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

ChapterC: Cases

Section: Chapter Questions

Problem 5.1SC: Scenario 3 Ben Gibson, the purchasing manager at Coastal Products, was reviewing purchasing...

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Scenario 3 Ben Gibson, the purchasing manager at Coastal Products, was reviewing purchasing expenditures for packaging materials with Jeff Joyner. Ben was particularly disturbed about the amount spent on corrugated boxes purchased from Southeastern Corrugated. Ben said, I dont like the salesman from that company. He comes around here acting like he owns the place. He loves to tell us about his fancy car, house, and vacations. It seems to me he must be making too much money off of us! Jeff responded that he heard Southeastern Corrugated was going to ask for a price increase to cover the rising costs of raw material paper stock. Jeff further stated that Southeastern would probably ask for more than what was justified simply from rising paper stock costs. After the meeting, Ben decided he had heard enough. After all, he prided himself on being a results-oriented manager. There was no way he was going to allow that salesman to keep taking advantage of Coastal Products. Ben called Jeff and told him it was time to rebid the corrugated contract before Southeastern came in with a price increase request. Who did Jeff know that might be interested in the business? Jeff replied he had several companies in mind to include in the bidding process. These companies would surely come in at a lower price, partly because they used lower-grade boxes that would probably work well enough in Coastal Products process. Jeff also explained that these suppliers were not serious contenders for the business. Their purpose was to create competition with the bids. Ben told Jeff to make sure that Southeastern was well aware that these new suppliers were bidding on the contract. He also said to make sure the suppliers knew that price was going to be the determining factor in this quote, because he considered corrugated boxes to be a standard industry item. Is Ben Gibson acting legally? Is he acting ethically? Why or why not?
Scenario 3 Ben Gibson, the purchasing manager at Coastal Products, was reviewing purchasing expenditures for packaging materials with Jeff Joyner. Ben was particularly disturbed about the amount spent on corrugated boxes purchased from Southeastern Corrugated. Ben said, I dont like the salesman from that company. He comes around here acting like he owns the place. He loves to tell us about his fancy car, house, and vacations. It seems to me he must be making too much money off of us! Jeff responded that he heard Southeastern Corrugated was going to ask for a price increase to cover the rising costs of raw material paper stock. Jeff further stated that Southeastern would probably ask for more than what was justified simply from rising paper stock costs. After the meeting, Ben decided he had heard enough. After all, he prided himself on being a results-oriented manager. There was no way he was going to allow that salesman to keep taking advantage of Coastal Products. Ben called Jeff and told him it was time to rebid the corrugated contract before Southeastern came in with a price increase request. Who did Jeff know that might be interested in the business? Jeff replied he had several companies in mind to include in the bidding process. These companies would surely come in at a lower price, partly because they used lower-grade boxes that would probably work well enough in Coastal Products process. Jeff also explained that these suppliers were not serious contenders for the business. Their purpose was to create competition with the bids. Ben told Jeff to make sure that Southeastern was well aware that these new suppliers were bidding on the contract. He also said to make sure the suppliers knew that price was going to be the determining factor in this quote, because he considered corrugated boxes to be a standard industry item. As the Marketing Manager for Southeastern Corrugated, what would you do upon receiving the request for quotation from Coastal Products?
Explain the following in respect of the Inventory: a) Characteristics b) Need
Periodic Inventory Using FIFO, LIFO, and Weighted Average Cost Methods The units of an item available for sale during the year were as follows: Jan. 1 Inventory 15 units at $40 $600 Aug. 13 Purchase 5 units at $41 205 Nov. 30 Purchase 11 units at $42 462 Available for sale 31 units $1,267 There are 9 units of the item in the physical inventory at December 31. The periodic inventory system is used. Determine the inventory cost using the (a) first-in, first-out (FIFO) method; (b) last-in, first-out (LIFO) method; and (c) weighted average cost method (round per-unit cost to two decimal places and your final answer to the nearest whole dollar). a. First-in, first-out (FIFO) $fill in the blank 1 b. Last-in, first-out (LIFO) $fill in the blank 2 c. Weighted average cost $fill in the blank 3
Define INVENTORY CONTROL?
1. Dobson pet store has an average inventory of $15,000. Their annual sales are $60,000. Find the inventory turnover based uopn the annual sales. 2. Brothers Shirt Shop had quarterly sales that averaged $34,000. Their average inventory was $27,500. Find the inventory turnover based upon annual sales to the nearest tenth.
Michael’s Offi ce Supply (MOS) sells offi ce furniture,equipment, and supplies. Th is week the company has received 50customer orders. Each order has an average of fi ve line items. Th eaverage dollar amount of each order is $1200. MOS was able toship 47 of the 50 orders on schedule.(a) Using the percentage of orders shipped on time, calculatethe customer service level.(b) If Michael’s calculates customer service level by using thepercentage of line items shipped on schedule, how manyline items must be shipped to achieve the same customerservice level calculated in part (a)?(c) If Michael’s calculates customer service level by thepercentage of dollar volume shipped, how many dollarsof product must be shipped to achieve the same customerservice level calculated in part (a)?(d) What factors determine the customer service levelmeasure that MOS should use?
Explain the importance of inventory management in an organisation.
Periodic Inventory Using FIFO, LIFO, and Weighted Average Cost Methods The units of an item available for sale during the year were as follows: 12 units at $47 Jan. 11 Aug. 13 20 units at $48 Nov. 30 $564 960 735 Avaliable for sale $2,259 There are 20 units of the item in the physical inventory at December 31. The periodic inventory system is used. Determine the inventory cost using the (a) first-in, first-out (FIFO) method; (b) last-sout (LIFO) method; and (c) weighted average cost method (round per-unit cost to two decimal places and your final answer to the nearest whole dollar). a First-in, first-out (FIFO) b. Last-in, first-out (LIFO) c. Weighted average cost Inventory Purchase Purchase 15 units at $49 47 units 1,284 X
Can you assist me with Question 12.3. Please right out the steps it's easier to understand verses on the excel spreadsheet. If you do it in excel can you make it easy to follow along to. Thank you kindly.
Over the past 12 months, Super Toy Mart has experienced a demand variance of 10,250 units and has produced an order variance of 12,050 units. Part 2 a) The bullwhip measure for Super Toy Mart is ______ (round your response to two decimal places). Part 3 b) If Super Toy Mart had made a perfect forecast of demand over the past 12 months and had decided to order 1/12 of that annual demand each month, the bullwhip measure would have been ______ (round your response to the nearest whole number.)
Dogs-R-Us and K-9, Inc. are two retail stores that cater to theneeds of dog owners in the greater Charleston area. Thereis healthy competition between these two establishments.Both operate 52 weeks a year and both sell approximately thesame type and dollar value of items. Table 12.4 provides thecost of goods sold, the average inventory level, and unit valueof each item sold in the two stores.a. Compare the two retail stores in terms of average aggre-gate inventory value.b. Compare the two retail stores in terms of weeks of supply.c. Compare the two retail stores in terms of inventoryturnover