MyLab Operations Management with Pearson eText -- Access Card -- for Operations Management: Processes and Supply Chains
11th Edition
ISBN: 9780133885583
Author: Lee J. Krajewski, Manoj K. Malhotra, Larry P. Ritzman
Publisher: PEARSON
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Question
Chapter 12, Problem 6P
A
Summary Introduction
Interpretation: The total number of inventory in weeks of supply is to be calculated.
Concept Introduction: Average inventory is the average value of specific goods within a particular time period. It may vary from the median. It is calculated by averaging the sum of the number of points within the starting and ending values.
B
Summary Introduction
Interpretation: The total number of inventory turns is to be calculated.
Concept Introduction: The Average inventory is the average value of specific goods within a particular time period. It may vary from the median. It is calculated by averaging the sum of the number of points within the starting and ending values.
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Students have asked these similar questions
Mattress Wholesalers, Inc. is constantly trying to reduce inventory in its supply chain. Last year, cost of goods sold was $7.46 million and inventory was $1.52 million. This year, costs of
goods sold is $8.64 million and inventory investment is $1.61 million.
a) What was its weeks of supply last year?
Inventory
Inventory
=
Sales per Week Cost of Sales/52 Weeks
Weeks of Supply=
-
b) What is its weeks of supply this year?
Inventory
Inventory
Sales per Week Cost of Sales/52 Weeks
c) Is Mattress Wholesalers making progress in its inventory reduction effort?
Since the number of weeks that cover the supply has
Weeks of Supply =
10.60 (round your response to two decimal places).
=
9.69 (round your response to two decimal places).
F
Mattress Wholesalers is making
in its inventory-reduction effort.
What is a “supply chain,” and how are supply chains related to justin-time inventory procedures?
Explain Supply Chain Inventory Planners?
Chapter 12 Solutions
MyLab Operations Management with Pearson eText -- Access Card -- for Operations Management: Processes and Supply Chains
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- The following lots of a particular commodity were available for sale during the year Beginning inventory 7 units at $49.00 First purchase 18 units at $54.00 Second purchase 25 units at $59.00 Third purchase 14 units at $59.00 The firm uses the periodic system, and there are 23 units of the commodity on hand at the end of the year. What is the amount of inventory at the end of the year according to the FIFO method? Select the correct answer. $1,127.00 $1,357.00 $3,616.00 $3,593.00arrow_forwardHi please help me please, Read the screenshot and answer the following questions: 1. Dawn understands her customers very well. She knows that they want two things: (1) speed in getting the sandwich, no matter what type and (2) the sandwich must taste fresh. As Dawn works out how to improve her inventory management process, how can she utilize the ABC inventory classification system as part of the remedy for this situation? • Think outside the box. Consider which type of inventory she really needs to classify using the ABC classification system. 2. As we examine this case, we know that the basic issue is low inventory turnover. Consequently, the bins are overstocked during specific times and items must be discarded because they exceed the freshness quality time limit. As she considers this point, Dawn is debating if she needs to use the EOQ model or the EMQ model. Provide a recommendation to Dawn on which model would be the most effective for her situation. Explain why your choice is…arrow_forwardDifferentiate supply chain management to demand chain management. Explain thoroughly.arrow_forward
- Mattress Wholesalers, Inc. is constantly trying to reduce inventory in its supply chain. Last year, cost of goods sold was $7 46 milion and inventory was $1 49 milion. This year, costs of goods sold is $8.59 million and inventory investment is $1.63 million a) What was its weeks of supply last year? weeks (round your response to two decimal places) b) What is its weeks of supply this year? weeks (round your response to two decimal placea) c) Is Mattress Wholesalers making progress in its inventory reduction effort? Since the number of weeks that cover the supply has V Mattress Wholesalers is making in its inventory-reduction effort negative progress no progress progressarrow_forwardCalculate the inventory management system's criteria for ongoing research and evaluation.arrow_forwardArrow Distributing Corp. likes to track inventory by using weeks of supply as well as by inventory turnover. Arrow Distributing Corp. Net Revenue $15,630 Cost of sales $12,190 Inventory $1,090 Total assets $8,770 a) What is its weeks of supply? weeks (round your response to two decimal places). b) What is Arrow's inventory turnover? times per year (round your response to two decimal places). c) Suppose a manufacturer has an inventory turnover of 13.5 times per year. Arrow's supply chain performance relative to the manufacturer's, as measured by inventory turnover, isarrow_forward
- You are newly employed by Shoprite in your area as a supply chain specialist. Shoprite wants to measure the impact of its customers on the business at large. Use the simple Method to calculate the Customer Lifetime Value (CVL) of Shoprite’s products using the following data (Include practical examples and analysis of the final results):arrow_forwardLast year, an online retailer of tennis equipment carried an average inventory of $7,500,000.The retailer reported sales revenue of $49,200,000 last year with a cost of goods sold of $23,900,000. Use this information to calculate the inventory turnover for the retailer last year. The inventory turnover for the retailer is ------- turns per year. (Enter your response rounded to two decimal places.)arrow_forwardABC analysis divides on-hand inventory into threeclasses, based on:a) unit price.b) the number of units on hand.c) annual demand.d) annual dollar values.arrow_forward
- 21- Which one of the following represent FIFO method of inventory evaluation? a. Old items remain in inventory b. Old merchandise is sold first c. New merchandise is sold first d. Average number of goods are soldarrow_forward33- Which one of the following is a reason for a stock out situation for a retailer? a. Consumer demand remains unchanged b. Price of the product increases c. More lead time taken by the supplier d. There is buffer stock with the retailerarrow_forwardIf the company in #8 uses exponential smoothing (smoothing factor = .6) and the forecast for the year is the figure they use for EOQ calculations, calculate the EOQ using the following information: The cost of ordering and carrying cost % are the same as #7 Cost of ordering: $25 Carrying costs: 45% Starting with 2018, Forecast the 2020 demand using exponential smoothing and then use that forecast as the annual demand. year sales 2017 1,000,000 2018 1,200,000 2019 2,000,000 2020arrow_forward
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