Ligo's batch of 1,000 boxes of canned sardines gets manufactured in the first week of the month, and another batch of 1,000 in thesecond week. The batch produced first gets delivered to the warehouse and must be sold first. Ligo uses this inventory methodwhich follows the logic that to avoid obsolescence, they should sell the oldest inventory items first and maintain the newest items ininventory.A) First in, first outB) Last in, first outJust in time

Last in first out refers to an inventory method in which the new items that arrive are to be sold…

Answered: Ligo's batch of 1,000 boxes of canned…

Principles Of Marketing

17th Edition

ISBN:9780134492513

Author:Kotler, Philip, Armstrong, Gary (gary M.)

Publisher:Kotler, Philip, Armstrong, Gary (gary M.)

Chapter1: Marketing: Creating Customer Value And Engagement

Section: Chapter Questions

Problem 1.1DQ

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Similar questions

Which one of the following represent FIFO method of inventory evaluation? a. Old merchandise is sold first b. Average number of goods are sold c. Old items remain in inventory d. New merchandise is sold first
Southern Markets, Inc. is considering the use of ABCanalysis to focus on the most critical SKUs in its inventory.Currently, there are approximately 20,000 different SKUswith a total dollar usage of $10,000,000 per year.a. What would you expect to be the number of SKUs and thetotal annual dollar usage for A items, B items, and C itemsat Southern Markets, Inc.? b. The following table provides a random sample of the unitvalues and annual demands of eight SKUs. Categorizethese SKUs as A, B, and C items.
The average expense of keeping inventory for an integrated circuit producer is 48 percent.What inventory keeping expense (in $) does an object cost $300 and has an estimated one-month inventory supply?
Dave’s local college football team is playing for the national championship in next month’s bowl game, and he’s thinking about having “We’re number one” T-shirts imprinted in honor of the team. It’s too late to get the shirts before game day, but if he orders today, he can get them within a few days after the game. The shirts must be ordered in multiples of 1000, and Dave has estimated the amount of profit he will make for possible outcomes of the game. Given the following payoff table, what will Dave do if he uses the maximin criterion? The maximax criterion? The minimax regret criterion? Order no shirts $0 wins $0 loses $0 ties Order 1000 shirts $800 wins $-200 loses $200 ties Order 2000 shirts $1600 wins $-400 loses $300 ties
Paul’s Toy Distributor (PTD) sells 200 game consoles every week. PTD charges a $300 fixed cost for every delivery. PTD’s annual inventory holding cost is $45 per console. Assume that there are 52 weeks a year. Assume that PTD orders 1000 game consoles at a time. What is the average amount of time the consoles stay as PTD’s inventory before being sold? Find the closest answer.
Inventory tracking is concerend both ith the quantity and the location of the goods in inventory. Select one: a. True. b. False.
Ordering Costs are associated with keeping stock over time. Select one: True False
Alpha Products, Inc., is having a problem trying to control inventory. There is insufficient time to devote to all its items equally. The following is a sample of some items stocked, along with the annual usage of each item expressed in dollar volume. ITEM ANNUAL DOLLAR USAGE ITEM ANNUAL DOLLAR USAGE a S 30, 100 k S 1,700 b 27,000 120,000 c 93,000 m 111,000 d 1,400 n 3,000 e 1,800 o 500 f 30,000 p 114, 000 g 1,600 q 2,600 h 2,500 г 28,000 i 3, 200 s 2, 800 j 1,500 t 3, 100 a. Suggest a system for allocating control time? multiple choice ABC analysis Cycle counting b. Specify where each item from the list would be placed.
A product is produced in batches. Batch size = 2000 units. Annual demand = 50,000 units, and unit cost of the product = $4.00. Setup time to run a batch = 2.5 hr, cost of downtime on the affected equipment is figured at $250/hr, and annual holding cost rate = 30%. What would the annual savings be if the product were produced in the economic order quantity?
When a retailer places large order of inventory: a. Ordering costs reduces and holding costs increases b. Ordering costs reduces and holding costs decreases c. Ordering costs increases and holding costs increases d. Ordering costs increases and holding costs decreases
Cheryl Druehl has asked you to help her determinethe best ordering policy for a new product. The demand for thenew product has been forecasted to be about I ,000 units annually.To help you get a handle on the carrying and ordering costs,Cheryl has given you the list of last year's costs. She thought thatthese costs might be appropriate for the new product. She also told you that these data were compiled for 10,000 inventoryitems that were carried or held during the year. You havealso determined that 200 orders were placed last year. Your job as a new opera tions management graduate is to help Cheryl determinethe economic order quantity for the new product.
In ABC analysis, 50 to 60 percent of the number of items in inventory but only about 10 to 15 percent of the annual dollar value represent Select one: a. B items b. C items C. A items d. A or C items

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