Question 1. Describe the four types of inventory.

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Answer 1

Textbook Question

Chapter 12, Problem 1DQ

Question

1. Describe the four types of inventory.

Expert Solution & Answer

Summary Introduction

To describe: The four types of inventory.

Introduction: Inventory management is the process of ordering, storing and using inventory of the company such raw material, components and finished goods. It governs the flow of goods from manufacturers to warehouse and to the point of sale. The key function is to maintain record of flow of new or returned products which enters or leaves the company.

Explanation of Solution

Four types of inventory:

The four types of inventory are,

Raw materials: These are items which are to be converted into final products.
Work-in-process (WIP): The items which are to be converted and items which undergoes transformation process.
Finished goods: Raw materials which had undergone complete transformation but title has not been transferred.
MRO: Items such as equipment, supplies which are necessary for transformation process.

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Students have asked these similar questions

Question2: A company that sells fruit juices sells 1250 cases of fruit juice from cases priced at $50 per case in a month. The business is in city x and juices are ordered from city y. Each order costs the business $250. Storage costs are 20% of a case of fruit juice. According to this;a) the economic order quantity of the enterprise?b) How many days is the time between two orders?c) What is the total inventory cost of the business, including the acquisition costs, in dollars/month?

Question 5 Safety Stock Model Consider the following information on an inventory management system (one year is 50 weeks, one year is 365 days and 1 week is 7 days): Item Cost:$10 Order Cost:$250 Annual Holding Cost:33% of item cost Average Demand:515 per week Std. Dev. of Demand:125 per week Lead time:14 days a) Ignoring the uncertainty in the demand (i.e. looking only at average values), find the optimal order quantity and the reorder point. b) Consider now the uncertainty. The order quantity remains the same. If the target is to have a 98% annual service level, what should be the ROP? What is the safety stock? c) If the ROP is 1178 units (note that z value has been changed), what is the corresponding annual service level that the firm can provide?

QUESTION 9 A popuar and effective tool for demand management and planning is called

Answer 2

Textbook Question

Chapter 12, Problem 1DQ

Question

1. Describe the four types of inventory.

Expert Solution & Answer

Summary Introduction

To describe: The four types of inventory.

Introduction: Inventory management is the process of ordering, storing and using inventory of the company such raw material, components and finished goods. It governs the flow of goods from manufacturers to warehouse and to the point of sale. The key function is to maintain record of flow of new or returned products which enters or leaves the company.

Explanation of Solution

Four types of inventory:

The four types of inventory are,

Raw materials: These are items which are to be converted into final products.
Work-in-process (WIP): The items which are to be converted and items which undergoes transformation process.
Finished goods: Raw materials which had undergone complete transformation but title has not been transferred.
MRO: Items such as equipment, supplies which are necessary for transformation process.

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Answer 3

Textbook Question

Chapter 12, Problem 1DQ

Question

1. Describe the four types of inventory.

Expert Solution & Answer

Summary Introduction

To describe: The four types of inventory.

Introduction: Inventory management is the process of ordering, storing and using inventory of the company such raw material, components and finished goods. It governs the flow of goods from manufacturers to warehouse and to the point of sale. The key function is to maintain record of flow of new or returned products which enters or leaves the company.

Explanation of Solution

Four types of inventory:

The four types of inventory are,

Raw materials: These are items which are to be converted into final products.
Work-in-process (WIP): The items which are to be converted and items which undergoes transformation process.
Finished goods: Raw materials which had undergone complete transformation but title has not been transferred.
MRO: Items such as equipment, supplies which are necessary for transformation process.

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Answer 4

Textbook Question

Chapter 12, Problem 1DQ

Question

1. Describe the four types of inventory.

Expert Solution & Answer

Summary Introduction

To describe: The four types of inventory.

Introduction: Inventory management is the process of ordering, storing and using inventory of the company such raw material, components and finished goods. It governs the flow of goods from manufacturers to warehouse and to the point of sale. The key function is to maintain record of flow of new or returned products which enters or leaves the company.

Explanation of Solution

Four types of inventory:

The four types of inventory are,

Raw materials: These are items which are to be converted into final products.
Work-in-process (WIP): The items which are to be converted and items which undergoes transformation process.
Finished goods: Raw materials which had undergone complete transformation but title has not been transferred.
MRO: Items such as equipment, supplies which are necessary for transformation process.

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Answer 5

Textbook Question

Answer 6

Textbook Question

Answer 7

Expert Solution & Answer

Summary Introduction

To describe: The four types of inventory.

Introduction: Inventory management is the process of ordering, storing and using inventory of the company such raw material, components and finished goods. It governs the flow of goods from manufacturers to warehouse and to the point of sale. The key function is to maintain record of flow of new or returned products which enters or leaves the company.

Explanation of Solution

Four types of inventory:

The four types of inventory are,

Raw materials: These are items which are to be converted into final products.
Work-in-process (WIP): The items which are to be converted and items which undergoes transformation process.
Finished goods: Raw materials which had undergone complete transformation but title has not been transferred.
MRO: Items such as equipment, supplies which are necessary for transformation process.

Answer 8

Expert Solution & Answer

Summary Introduction

To describe: The four types of inventory.

Introduction: Inventory management is the process of ordering, storing and using inventory of the company such raw material, components and finished goods. It governs the flow of goods from manufacturers to warehouse and to the point of sale. The key function is to maintain record of flow of new or returned products which enters or leaves the company.

Explanation of Solution

Four types of inventory:

The four types of inventory are,

Raw materials: These are items which are to be converted into final products.
Work-in-process (WIP): The items which are to be converted and items which undergoes transformation process.
Finished goods: Raw materials which had undergone complete transformation but title has not been transferred.
MRO: Items such as equipment, supplies which are necessary for transformation process.

Answer 9

Expert Solution & Answer

Answer 10

Expert Solution & Answer

Answer 11

Summary Introduction

To describe: The four types of inventory.

Introduction: Inventory management is the process of ordering, storing and using inventory of the company such raw material, components and finished goods. It governs the flow of goods from manufacturers to warehouse and to the point of sale. The key function is to maintain record of flow of new or returned products which enters or leaves the company.

Answer 12

Explanation of Solution

Four types of inventory:

The four types of inventory are,

Raw materials: These are items which are to be converted into final products.
Work-in-process (WIP): The items which are to be converted and items which undergoes transformation process.
Finished goods: Raw materials which had undergone complete transformation but title has not been transferred.
MRO: Items such as equipment, supplies which are necessary for transformation process.

Answer 13

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Question 1. Describe the four types of inventory.

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