2. The Ashton Furniture Company manufactures coffee tables and chest of drawers. Last year the company'scost of goods sold was $3,700,000, and it carried inventory of oak, pine, stains, joiners, and brass fixtures,work-in-process of furniture frames, drawers and wood panels, and finished chests and coffee tables. Itsaverage inventory levels for a 52-week* business year were as follows.Raw MaterialsOakPineBrass fixturesStainsJoinersWork-in-ProcessFramesDrawersPanelsChestsTablesFinished GoodsChestsCoffee tables*1 week = 7 daysAverage Inventory800045001200300090020040060012090300200Unit Cost$64821$30105011090$500350Formula:Inventory turns = Cost of goods sold / Average aggregate value of inventoryDays of supply = Average aggregate value of inventory / (Cost of goods sold / total days)Question:Determine the number of inventory turns and the days of supply for the furniture company.

COGS = $3700000 Total weeks = 52 Total days= 52*7 =364 days

Answered: Formula: Inventory turns = Cost of…

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

Question 3The weekly demand for a product, which is held in stock is always 90 units.When an order for new stock is placed, it is delivered almost instantaneously by an ordering cost of 50,000 is incurred. The product costs 3,000 per unit,and it costs 15 percent of this amount to hold a unit in stock for a year.Currently, orders are placed for 2000 units. There are 50 working weeks in ayear and lead time is one week. a) As a management science student, the MD of the company seeks yourexpert advice on ways in which to determine the economic order quantity,optimal order cycle time, re-order level and total annual inventory cost.Advise the MD, providing detailed explanation using your answer. Writeyour answer in a form of a report to the MD. b) Advise the MD about savings, if any, could be made by changing fromcurrent order quantity of GH¢ 2000 units to the one obtained in (a) above. c) Describe the order policy followed by the firm based on your calculations
Discussion Questions 1. The customer order decoupling point was described as the point at which the demand changed from independent to dependent. Describe what this means and why it is important to managers. 2. Provide examples of make-to-stock, assemble-to-order, and make-to-order products. What advantages are there in moving from make-to-stock to assemble- or make-to- order?
TOPIC : Inventory Systems for Independent Demand
Question: What level of safety stock should be maintained? Please show the solution. Thank you
question #3 Same problem statement: Weekly demand for DVD-Rs at a retailer is normally distributed with a mean of 1,000 boxes and a standard deviation of 150. Currently, the store places orders to the supplier, with a reorder point of 4,200 boxes. The order quantity to the supplier is fixed at 5,000 boxes. Replenishment lead time is 4 weeks, fixed order cost per order is $100, each box costs the retailer $10, and the inventory holding cost is 25% per year. With a safety stock of 300 boxes, what is the approximate service level (round to two decimals)? Numeric Response 84.13 * f5 10 f6 0 4- ♫+ fg C fil W f12. insert prt sc + 11 Ə ← delete backspace home num lock 4x D end 1:23 PM 11/15/2022 pg up
Questions in red 10-12
question 3 Sam's Cat Hotel operates 52weeks per year, 5 days per week, and uses a continuous review inventory system. It purchases kitty litter for $10.50 per bag. The following information is available about these bags. Refer to the standard normal table AT END for z-values. ≻Demand= 92 bags/week ≻Order cost =$58/order ≻Annual holding cost =26 percent of cost ≻Desired cycle-service level=99 percent ≻Lead time = 1 week(s) (5 working days) ≻Standard deviation of weekly demand = 20 bags ≻Current on-hand inventory is 310 bags, with no open orders or backorders. a. What is the EOQ? Sam's optimal order quantity is__________ bags. (Enter your response rounded to the nearest whole number.) What would be the average time between orders (in weeks)? The average time between orders is _________weeks. (Enter your response rounded to one decimal place.) b. What should R be? The reorder point is _________ bags. (Enter your response rounded to the…
QUESTION 15 ID-planned order release using EOQ technique Clancy's Motors has the following demand to meet for custom manufactured fuel injector parts. The holding cost for that item is $2 per month and each setup costs $80. Lead time is 0 months. Calculate the planned order releases using: the EOQ technique including the holding cost of any inventory left over after month 7? Month Requirement 1 400 What is the total cost? 2016 2509 1405 1536 2 150 3 200 150 100 150 250
Inventory is not a property that is acquired for the purpose of resale in a business activity. Question 4 options: True False
QUESTION 13 The return to any factor of production that is in variable demand variable supply fixed demand fixed supply is pure rent.

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

Formula: Inventory turns = Cost of goods sold / Average aggregate value of inventory Days of supply = Average aggregate value of inventory/ (Cost of goods sold / total days) Question: Determine the number of inventory turns and the days of supply for the furniture company.