What are the detailed components of inventory holding costs in this situation?  What other factors might influence holding costs, such as security costs, obsolescence costs, and others?

Q: Describe the nature of the costs that affect inventory size

A: The overall value of items manufactured for sale by a company is referred to as inventory size.

Q: What does the ABC analysis entail! What is the underlying premise? What are the three criteria for…

A: The premise of ABC analysis: ABC analysisis a methodology that helps in classifying the inventory…

Q: Which annual inventory cost component does the blue line represent? Total cost Which annual…

A: In the graph, annual costs such as holding, ordering, and total cost are demonstrated on the…

Q: What is the logic behind assuming Inventory holding cost is based on average inventory?

A: Inventory holding cost refers to the cost associated with unsold inventories. These costs are…

Q: Part 2 Calculation Questions As assistant manager of a soccer specialty store you have been asked to…

A: Given data:  Average weekly demand (d) = 18 pairs/week Standard Deviation of demand = 6 pairs Lead…

Q: (b) Question 2. What is the reorder point (in days)? (c) Question 3. How long is the cvcle time (T,…

A: Economic order quantity is the optimal quantity that the business needs to buy the inventory to…

Q: Given Information Service Level - 95% (z value= 1.6649) Order Cost - $125 Order Cycle (weeks) -…

A: Given data is Annual demand(D) = 27040 units Fixed holding cost(H) = 1659317.307 Variable holding…

Q: Explain the discrepancies causes in the inventory

A: Demand can be defined as items that are offered for the production of new items, as well as products…

Q: Distinguish between physical inventory systems and perpetual inventory systems. Give an example of a…

A: The perpetual Inventory System is a method of keeping track of the inventories in the business where…

Q: State the 3 elements of inventory management ?

A: Inventory management is the operation of purchasing, warehousing, and utilizing the inventory of the…

Q: Who needs to be involved in inventory decisions involving holding costs? Setting inventory…

A: Inventory decisions Inventory decisions involving holding costs The key personnel included in making…

Q: Describe what is safety stock and what it provides safety against in inventory management

A: To define:  what is safety stock and what it provides safety against in inventory management

Q: Do you think the safety stock (safety inventory) could be negative? What is the meaning of a…

A: The term safety stock can be understood as the inventory which is kept as a buffer. It is the…

Q: Question 1: What are the primary reasons for holding inventory?

A: Inventory or stock refers to the goods and materials that an organization or business holds to…

Q: What conditions must exist for good inventory management ?

A: It is the administration of non-capitalized assets, such as stock items. Warehouse management is a…

Q: hat are the disadvantages of abc inventory sy

A: ABC inventory system is an inventory framework that is utilized to emphasize and spotlight those…

Q: What are the different aspects of inventory management?

A: Inventory control refers to the process of obtaining, storing, and using a company's inventory. This…

Q: Briefly

A: Introduction: Inventory control consists of the steps a business takes to acquire, store, and…

Q: Determination of the reorder point?

A: Reorder points are essential for any company that wishes to manage its inventory effectively. Making…

Q: X Ltd buys & uses a component for production at 10/piece Annual requirement is 2000 pieces. Carrying…

A: Given: Annual Requirement (A) = 2000 units Ordering cost (O) = 40 per order Carrying Cost (C)= 10%…