Keggler's Supply is a merchandiser of three different products. Beginning Inventories for March are footwear, 20,000 units; sports gear,80,500 units; and apparel, 50,000 units. Management believes each of these Inventories is too high and begins a new policy thatending Inventory in any month should equal 30% of the budgeted sales units for the following month. Budgeted sales units for March,April, May, and June follow.FootwearSports gearApparel55JuneBudgeted Sales in UnitsMarch AprilMay14,500 23,500 33,000 33,00071,500 90,500 95,000 90,50041,500 38,000 33,500 23,000Required:1. Prepare a merchandise purchases budget (in units only) for each product for each of the months of March, April, and May.FOOTWEARAdd: Desired ending inventoryKEGGLER'S SUPPLYMerchandise Purchases BudgetMarchAprilMayNext period budgeted sales unitsRatio of ending inventory to future salesTotal required unitsUnits to purchaseSPORTS GEARAdd: Desired ending inventoryNext period budgeted sales unitsRatio of ending inventory to future salesTotal required unitsUnits to purchaseAPPARELAdd: Desired ending inventoryNext period budgeted sales unitsRatio of ending inventory to future salesTotal required units0

Approach to solving the question: Detailed explanation: Examples: Key references:

Answered: Keggler's Supply is a merchandiser 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

SF, owner of the kebab houses, uses 20 pounds of mince each day in preparing meatball. Order costs for mince are $10.00 per order, and carrying costs are 4 cents per pound per day. Lead time for each order is three days, and the mince itself costs $3.00 per pound. At what point should she reorder mince? Select one: 20 pounds remaining 60 pounds remaining 100 pounds remaining 80 pounds remaining 40 pounds remaining
A company has a demand for 25,750 units annually. The holding cost is 33% of the item cost which is $10.00. The ordering or set-up cost is $250.00 per order and the lead time is 5 days. Assume that there are 350 days per year Suppose a price break of $50 per order is offered for purchase quantities of 2,000 or greater. Question: What is the reorder point for this inventory strategy? What is the inventory position immediately after an order is placed for the inventory strategy that you have selected?
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 $10, and the inventory holding cost is 25% per year. Assume 50 weeks in a year. Given the problem parameters, what is the optimal order quantity the retailer should order? J Numeric Response 7 ( # 2040 * f4 7/$ f5 40 % f6 0 4- A f7 + & 7 fg f11 W f12. insert prt sc + 11 delete backspace home num lock end 11/1
You are in the process of deciding the optimal order quantity of shampoo packs for a hotel. The supplier charges you $47 per order and your stockroom costs approximately $0.69 per shampoo pack per year to store the product. Based on prior research, you were able to determine that the hotel goes through approximately 94 shampoo packs per day. They hold 0 safety stock. The supplier is willing to give the following quantity discounts for the product. Using the order quantity that will minimize total cost, what is the total annual cost? Quantity 1 - 1499 $2.25 $2.10 $2.05 $2.03 Note: Round your answer to 2 decimal places. Do NOT include $ sign or a comma. For example, answer like 50246 and NOT $50,246 Answer: 1500 - 3999 4000 - 7999 8000+ Price Check
A manufacturer procures a subassembly from a supplier. The annual demand is 145,000 units, the cost per unit is $4, the inventory-carrying charge is 12 percent, and the order cost is $225. For orders between 10,000 but less than 30,000, a five percent discount is applied, and for orders exceeding 30,000, a eight percent discount is applied. What is the optimal order quantity? Use the Quantity Discount Excel template to find your answer.
Given the following data: Period Gross 1 2 3 4 5 6 7 8 Requirements 20 20 50 50 80 80 50 50 The beginning inventory is 0 and there are no scheduled receipts. The order cost is $50 and the holding cost is $1 per part per period. What are the order costs, carrying costs, and totals cost over the 8 periods using the period order quantity rule with POQ = 2? Oorder costs $200, carrying costs $200, and total costs $400 Oorder costs $400, carrying costs $340, and total costs = $740 Oorder costs $200, carrying costs $340, and total costs $540 Oorder costs $400, carrying costs $0, and total costs = $400
Need help! A-1 is incorrect.
gainesvile cigar stocks cuban cigars that have variable lead times because of the difficulty in importing the product: lead time is normally distributed with an average of 6 weeks and a standard deviation of 2 weeks. demand is also a variable and normally distributed with a mean of 200 cigars per week and a standard deviation of 25 cigars. a) for a 90% of service level, what is the rop?
As with other products, Fisher-Price faces the decision of how many Weather Teddy units to order for the comingholiday season. Members of the management team suggested order quantities of 15,000, 18,000, 24,000, or28,000 units. The wide range of order quantities suggested indicates considerable disagreement concerning themarket potential. The product management team asks you for an analysis of the stock-out probabilities forvarious order quantities, an estimate of the profit potential, and to help make an order quantity recommendation.Fisher-Price expects to sell Weather Teddy for $24 based on a cost of $16 per unit. If inventory remains afterthe holiday season, Fisher-Price will sell all surplus inventory for $5 per unit. After reviewing the sales historyof similar products, Fisher-Price’s senior sales forecaster predicted an expected demand of 20,000 units with a.95 probability that demand would be between 10,000 units and 30,000 units. Question: One of Fisher-Price’s managers felt…
1. Suppose the demand of a product in a retail store is 800 per year and it occurs at a constant rate. Placement of an order of this product to an outside supplier by the store is 40 Dollar. The super market authority has calculated the inventory holding cost per unit per year as 90 cents. Assuming no occurrence of shortages of the product, find a) i. the minimal order quantity of the product from the outside supplier if the product is not allowed to sell during production. ii. the minimal number of orders per year. Explain whether the nearest integer number of orders per year is justified. iii. the cycle time of a lot in months. iv. the annual minimal total cost of ordering and inventory holding for that minimal order quantity. v. the reorder point if the lead time of delivering a lot is 2 days,? b) If the production rate of processing the product is 1200 per year and the set up cost per set up is 65 Dollar. If the selling of the product is allowed during production, determine i) the…
f2 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. Assume 50 weeks in a year. Given the problem parameters, what is the optimal order quantity the retailer should order? Numeric Response f3 2040 f4 f5 40 f6 0 4- f7 ♫+ f11 W f12. X insert prt sc + = O delete ← backspace home num lock
A major automobile manufacturer located in Georgetown, Kentucky, has two certified vendors that produce brake pads with the information shown below. New Albany Manufacturing is located in Columbus, Ohio, and LaPlaya Manufacturing is located in Monterrey, Mexico. The automobile assembly factory is assumed to operate 250 days per year. Order quantity: Total procurement cost: Total management oversight cost: Total annual transportation cost: Annual order cost: Annual holding cost: Average annual pipeline invenory cost: Total supply chain costs: $ $ $ Certified Supplier New Albany Mfg. LaPlaya Mfg. a. Use the Total Supply Chain Cost Excel template to compute the supply chain costs associated with each supplier if the annual demand is 742,000 brake pads. Do not round intermediate calculations. Round your answer to the nearest dollar. $ $ $ $ 53,000 units X X X $ $ $ $ $ $ Order Size (Q) 53,000 106,000 $ Price per Unit (P) $12.21 $11.44 106,000 units Oversight Cost per Unit (0) $0.00 $0.20 X…

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