Hau Lee Furniture, Inc., spends 60% of its sales dollars in the supply chain and finds its current profit of $10,000 inadequate. The bank is insisting on an improved profit picture prior to approvalof a loan for some new equipment. Hau would like to improve the profit line to $25,000 so he can obtain the bank's approval for the loan.Current SituationSales$100,000S60,000 (60%)$20,000 (20%)$10,000 (10%)$10,000 (10%)Cost of materialProduction costsFixed costProfita) What percentage improvement is needed in the supply chain strategy for profit to improve to $25,000? What is the cost of material with a $25,000 profit?A 25 % decrease in material (supply-chain) costs is required to yield a profit of $25,000, for a new material cost of $ 45000 . (Enter your responses as whole numbers.)b) What percentage improvement is needed in the sales strategy for profit to improve to $25,000? What must sales be for profit to improve to $25,000?A % increase in sales is required to yield a profit of $25,000, for a new new level of sales of $. (Enter your responses as whole numbers.)

Given data; % Sales 100000 100 Cost of material 60000 60 Production cost 20000 20…

Answered: Hau Lee Furniture, Inc., spends 60% 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

Problem 16-16 (Algo) The McDonald's fast-food restaurant on campus sells an average of 7,200 quarter-pound hamburgers each week. Hamburger patties are resupplied twice a week, and on average the store has 795 pounds of hamburger in stock. Assume that the hamburger patties cost $4 a pound and there are 52 weeks in a year. a. What is the Inventory turnover for the hamburger pattles? (Round your answer to 2 decimal places.) Inventory turnover ratio per year b. On average, how many days of supply are on hand? (Do not round Intermediate calculations. Round your answer to 2 decimal places.) Average days of supply
Problem 16-16 (Algo) The McDonald's fast-food restaurant on campus sells an average of 4,800 quarter-pound hamburgers each week. Hamburger patties are resupplied twice a week, and on average the store has 465 pounds of hamburger in stock. Assume that the hamburger patties cost $3 a pound and there are 52 weeks in a year. a. What is the inventory turnover for the hamburger patties? (Round your answer to 2 decimal places.) Inventory turnover ratio per year b. On average, how many days of supply are on hand? (Do not round intermediate calculations. Round your answer to 2 decimal places.) Average days of supply
K Horizon Cellular manufactures cell phones for exclusive use in its communication network. Management must select a circuit board supplier for a new phone soon to be introduced to the market. The annual requirements (D) are 50,000 units and Horizon's plant operates 250 days per year. The data for three suppliers are in the following table. Supplier Abbott Baker Carpenter Annual Freight Costs Shipping Quantity (Q) Annual Price/Unit Holding Cost/Unit (P) $31 $30 $29 Using and a shipping quantity of Horizon Cellular of $ (Enter your response as an integer.) 4 10,000 20,000 $12,000 $9,000 $8,000 $5,000 $9,000 $6,000 Which supplier and shipping quantity will provide the lowest total cost for Horizon Cellular? (H) $6.20 Lead Time (L) (days) 5 $6.00 $5.80 7 6 Annual Administrative Cost $12,000 $8,000 $9,000 units is the lowest cost alternative, with annual total costs to
Problem #2 C & D only Please
Company B is a retailer of mobile phones in Australia that works 250 days in a year. Themanager would like you to determine a minimum-cost inventory plan for an upcoming mobilephone to be launched in the market. They have collected the following information:• Annual demand: 750 phones• Phone cost: $1,005 each• Phone RRP: $1,149 each• Net weight: 167 g each• Tare weight: 257 g each• Annual inventory holding cost: 27.5%• Cost per order to replenish inventory: $81.71• Annual in-transit holding cost: 10%• Freight rate (per kg): $8.10• Freight-related charges (per shipment): $276.50 (i.e. handling fee, dangerous goodfee, and lithium battery fee)• Time to process order for freight: 2 day• Freight transit time: 5 daysThe manager wants you to determine the following information:a. Economic order quantityb. The total purchasing costc. The total ordering costd. The total inventory holding coste. The total transportation cost (by weight)f. The total freight-related cost (by shipment)g. The total…
Cyberphone, a manufacturer of cell phone accessories, ended the current year with annual sales (at cost) of $72 million. During the year, the inventory of accessories turned over eight times. For the next year, Cyberphone plans to increase annual sales (at cost) by 18 percent. a. What is the increase in the average aggregate inventory value required if Cyberphone maintains the same inventory turnover during the next year? $nothing. (Enter your response as an integer.) b. What change in inventory turns must Cyberphone achieve if, through better supply chain management, it wants to support next year's sales with no increase in the average aggregate inventory value? nothing turns. (Enter your response rounded to one decimal place.)
k of PDF : https://docdro.id/psUSO2n https://docdro.id/KV8USNQ question : 1/ According to Weele, the items that we measure determines the role of the purchasing function. List these roles, and show the mapping. 2/ According to Simpson and et.al, why should we measure the performance of our suppliers? 3/ According to Simpson and et. al, what are the characteristics of our suppliers should we measure? List these down in terms of evaluative criteria and its details.
I need sub part 6 and 7 answered please
Hau Lee Furniture, Inc., spends 45% of its sales dollars in the supply chain and finds its current profit of $16,000 inadequate. The bank is insisting on an improved profit picture prior to approval of a loan for some new equipment. Hau would like to improve the profit line to $21,000 so he can obtain the bank's approval for the loan. Sales Cost of material Current Situation $80,000 $36,000 (45%) Production costs Fixed cost Profit $16,000 (20%) $12,000 (15%) $16,000 (20%) a) What percentage improvement is needed in the supply chain strategy for profit to improve to $21,000? What is the cost of material with a $21,000 profit? A decrease of 13.9 % in material (supply-chain) costs is required to yield a profit of $21,000, for a new material cost of $ 31000. (Enter your response for the percentage decrease to one decimal place and enter your response for the new material cost as a whole number.) b) What percentage improvement is needed in the sales strategy for profit to improve to…
Hau Lee Furniture, Inc., spends 45% of its sales dollars in the supply chain and finds its current profit of $15,000 inadequate. The bank is insisting on an improved profit picture prior to approval of a loan for some new equipment. Hau would like to improve the profit line to $20,000 so he can obtain the bank's approval for the loan. Sales Cost of material Current Situation $100,000 $45,000 (45%) Production costs Fixed cost Profit $25,000 (25%) $15,000 (15%) $15,000 (15%) a) What percentage improvement is needed in the supply chain strategy for profit to improve to $20,000? What is the cost of material with a $20,000 profit? A decrease of ☐ % in material (supply-chain) costs is required to yield a profit of $20,000, for a new material cost of (Enter your response for the percentage decrease to one decimal place and enter your response for the new material cost as a whole number.)
As an operations management consultant, you have been asked to evaluate a furniture manufacturer’s cash-to-cash conversion cycle under the following assumptions: sales of $26.4 million, cost of goods sold of $21.1 million, 50 operating weeks a year, total average on hand inventory of $2,350,000, accounts receivable equal to $2,435,000, and accounts payable of $3,695,000. What is the cash-to-cash conversion cycle in weeks? Do not round intermediate calculations. Round your answer to one decimal place. week(s) What recommendations can you make to improve performance? inventory weeks of supply and accounts receivable weeks of supply or accounts payable weeks of supply are ways to improve overall firm performance.
Please answer D & E.

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