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...

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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
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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…
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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.