Introduction Company FR is a full-time service restaurant offering variety of foods for breakfast, lunch and dinner. At present, Person KD is the general manager of the store and has an issue with managing the inventory and ordering items. Each time Person KD makes an order, there is an error (either the items are in shortage or in surplus, which incurs excess cost). The shortage of items led to unhappy customers and the customer count started to decrease. Company FR uses online inventory system, where a system is used to compute the inventory, the data of current inventory at the end of period, sales for the current week, and then the system makes the comparison. This is important to the company, since it accounts to 30% of the total cost. The company sets standards to have 29% to 36% of inventory level. At company FR, Person KR makes an order based on her intuitive assumption, since she is not fully aware of inventory management. Therefore, Person KR seeks helps from one of her employees to assist with managing inventory. To determine: The quantity of gravy mix to be ordered by company FR.

Question

Want to see the full answer?

Answer 1

Question

Chapter 12, Problem 3.3CQ

Summary Introduction

Introduction

Company FR is a full-time service restaurant offering variety of foods for breakfast, lunch and dinner. At present, Person KD is the general manager of the store and has an issue with managing the inventory and ordering items. Each time Person KD makes an order, there is an error (either the items are in shortage or in surplus, which incurs excess cost).

The shortage of items led to unhappy customers and the customer count started to decrease. Company FR uses online inventory system, where a system is used to compute the inventory, the data of current inventory at the end of period, sales for the current week, and then the system makes the comparison. This is important to the company, since it accounts to 30% of the total cost. The company sets standards to have 29% to 36% of inventory level.

At company FR, Person KR makes an order based on her intuitive assumption, since she is not fully aware of inventory management. Therefore, Person KR seeks helps from one of her employees to assist with managing inventory.

To determine: The quantity of gravy mix to be ordered by company FR.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Students have asked these similar questions

PharmaPlus operates a chain of 30 pharmacies. The pharmacies are staffed by licensed pharmacists and pharmacy technicians. The company currently employs 85 full-time-equivalent pharmacists (combination of full time and part time) and 175 full-time-equivalent technicians. Each spring management reviews current staffing levels and makes hiring plans for the year. A recent forecast of the prescription load for the next year shows that at least 250 full-time-equivalent employees (pharmacists and technicians) will be required to staff the pharmacies. The personnel department expects 10 pharmacists and 30 technicians to leave over the next year. To accommodate the expected attrition and prepare for future growth, management states that at least 15 new pharmacists must be hired. In addition, PharmaPlus’s new service quality guidelines specify no more than two technicians per licensed pharmacist. The average salary for licensed pharmacists is $40 per hour and the average salary for technicians…

The Seaside Hotel is a three-star hotel in Newquay, Cornwall. It contains 108 rooms and employs 30 fulltime and 40 parttime personnel. Between May and August, the hotel's workforce is nearly doubled by casual and temporary workers. Cornwall is a difficult place to do business, especially in the tourism industry. Business is highly seasonal with hotels experiencing very low occupancy during the offseason and many hotels choose not to operate during this time. The Seaside Hotel operates all year round by supplementing its tourism trade during the off-season by offering discounted conferencing facilities for local businesses and as a cheap base for corporate events and activities, such as team building weekends. Tourism is, however, vitally important for the region and its businesses and provides a significant proportion of all jobs in the South West. Cornwall can, however, be a difficult place in which to work. For instance, Newquay – Cornwall’s most popular holiday destination – is one…

In the past, Peter Kelle's tire dealership in Baton Rouge sold an average of 1,000 radials each year. In the past 2 years, 240 and 240, respectively were sold in fall, 350 and 320 in winter,150 and165 in spring, and 340 and 195 in summer. With a major expansion planned, Kelle projects sales next year to increase to 1,200 radials. Based on next year's projected sales, the demand for each season is going to be (enter your responses as whole numbers): Fall: Winter: Spring: Summer: