What are the disadvantages of the following methods that can be adopted to manage and achieve efficient control of inventories and benefit for improving the cashflow: Economic Order Minimum Order Quanitity FIFO and LIFO

What are the disadvantages of the following methods that can be adopted to manage and achieve efficient control of inventories and benefit for improving the cashflow: Economic Order Minimum Order Quanitity FIFO and LIFO

Understanding Business

12th Edition

ISBN:9781259929434

Author:William Nickels

Publisher:William Nickels

Chapter1: Taking Risks And Making Profits Within The Dynamic Business Environment

Section: Chapter Questions

Problem 1CE

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You are conducting a retrospective analysis for an Order-Up-To system (thus, the unsold inventory at the end of a week is carried over to the next week). The beginning inventory in week 1 is 150 units, the demand in week 1 is 180 units and the demand during week 2 is 250 units. If you receive a shipment of 115 units every week, at the end of week 2, the inventory level is 180 the inventory level is 200 the inventory level is 310 the backorder level is 30 the backorder level is 50 none of the above is correct
Every year XYZ Corp. sells 3,300 units of its product. It is charged $56.50 every time it reorders from its supplier and its inventory holding costs are $6.20 per unit. In order to minimize overall inventory costs, what would be the firm's average number of units that it holds?
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According to the Quantity Theory of Money, the Federal Reserve reducing reserve ratio will lead to _______ money supply which will only lead to _______ higher, inflation lower, inflation higher, booms lower, booms.
In international Business transactions, ____is the currency in which the sale of goods and services is denominated (a class of one kind of unit in a system of numbers or measures or weight or money) a. Flight capital b. invoicing currency c. Subuitution currency d. Flight currency e. Capital Subuitution
Coca Cola in Turkey manages its products' inventory at Shell gas stations, that is Coca Cola, decides replenishment time and the order quantities for all its products. Shell sends real-time sales data of Coca Cola products at its gas station stores and as part of this agreement Coca Cola gives a certain percentage discount in the prices it charges to Shell. Based on what we learned in class, choose the correct statement(s): O a. Because Shell owns the stores it is more likely to make better forecasts of the demand for Coca Cola products Ob. This agreement is a strategy to reduce the bullwhip effect Oc. The main purpose of VMI is to reduce lead time in supply chains O d. This is known as vendor-managed inventory (VMI)
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Given this information:Expected demand during lead time = 300 unitsStandard deviation of lead time demand = 30 unitsDetermine each of the following, assuming that lead time demand is distributed normally:a. The ROP that will provide a risk of stockout of 1 percent during lead time.b. The safety stock needed to attain a 1 percent risk of stockout during lead time.c. Would a stockout risk of 2 percent require more or less safety stock than a 1 percent risk?Explain. Would the ROP be larger, smaller, or unaffected if the acceptable risk were 2 percentinstead of 1 percent? Explain.
An online retailer sells 1,500 t-shirts per year. The cost of the t-shirts to the store is $3.00 and the cost of placing an order is $15 per order. It cost $0.60 per t-shirt per year for the retailer to hold the t-shirts. The retailer sells the t-shirts for $9.99. Determine (a) the optimal order quantity, (b) the order frequency (c) the annual holding and setup cost.
A shoe store orders shoes from the manufacturer and sells them at a mall. Storing shoes at the store costs $8 per shoe pair for a year. When reordering shoes from the manufacturer, there is a fixed cost of $16 per order as well as $4 per shoe pair. The retail store sells 750 shoe pairs each year. Find a function that models the total inventory costs as a function of the number of shoe pairs in each order from the manufacturer.
A company purchases wood for use in its products. The firm uses 760 pounds of wood per week and purchases wood for $1.75 per pound from a supplier. Each time the firm orders wood from the supplier, the firm must pay a $75 order processing charge. The firm's annual holding cost percentage is 31%. Do not round intermediate calculations. Assume there are 52 weeks in a year and round your answer to two decimal places. If the company orders 3,000 pounds of wood with each order, what is the sum of the annual holding and ordering costs? dollars
A business introduces e-purchasing and is able to process the same number of orders with lesser buyers. As a result of this: inventory pooling must be initiated inventory holding cost must be reduced purchase lead time should be reduced purchase quantity should be reduced