Boreki Enterprise has the following 10 items in inventory. Theodore Boreki asks you, a recent OM graduate, to dividethese items into ABC classifications. Fill in the blanks and then answer the following questions. (Round dollar volume tothe nearest whole number and percentage of dollar volume to two decimal places.)Item Annual Demand Cost/UnitA2120B812C745D144E920F340G2H215J81040001500200010002520060010002500Item F3 should be classified as1500203005DollarVolume48,00067,50020,000300,00012,00012,500% of Total DollarVolumeAB5.657.94For the following two questions consider only items A2 and F3 for relative classification (these are some of the items forwhich you computed the metrics).Based on the percentages of dollar volume, item A2 should be classified asC2.3535.291.411.47

Given data: Item Code Annual demand Cost/unit A2 10 120.00 B8 4000 12.00 C7 1500 45.00 D1…

Boreki Enterprise has the following 10 items in inventory. Theodore Boreki asks you, a recent OM graduate, to divide these items into ABC classifications. Fill in the blanks and then answer the following questions. (Round dollar volume to the nearest whole number and percentage of dollar volume to two decimal places.) Item Annual Demand Cost/Unit A2 B8 C7 D1 E9 F3 G2 H2 15 J8 10 4000 1500 2000 1000 Item F3 should be classified as 25 200 600 1000 2500 224424 120 12 45 20 40 1500 20 300 5 Dollar Volume 48,000 67,500 20,000 300,000 12,000 % of Total Dollar Volume A 5.65 7.94 12,500 For the following two questions consider only items A2 and F3 for relative classification (these are some of the items for which you computed the metrics). Based on the percentages of dollar volume, item A2 should be classified as B 2.35 35.29 1.41 1.47

Boreki Enterprise has the following 10 items in inventory. Theodore Boreki asks you, a recent OM graduate, to divide these items into ABC classifications. Fill in the blanks and then answer the following questions. (Round dollar volume to the nearest whole number and percentage of dollar volume to two decimal places.) Item Annual Demand Cost/Unit A2 B8 C7 D1 E9 F3 G2 H2 15 J8 10 4000 1500 2000 1000 Item F3 should be classified as 25 200 600 1000 2500 224424 120 12 45 20 40 1500 20 300 5 Dollar Volume 48,000 67,500 20,000 300,000 12,000 % of Total Dollar Volume A 5.65 7.94 12,500 For the following two questions consider only items A2 and F3 for relative classification (these are some of the items for which you computed the metrics). Based on the percentages of dollar volume, item A2 should be classified as B 2.35 35.29 1.41 1.47

Purchasing and Supply Chain Management

6th Edition

ISBN:9781285869681

Author:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson

Publisher:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson

Chapter16: Lean Supply Chain Management

Section: Chapter Questions

Problem 10DQ: The chapter presented various approaches for the control of inventory investment. Discuss three...

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The chapter presented various approaches for the control of inventory investment. Discuss three additional approaches not included that might involve supply chain managers.
Boreki Enterprise has the following 10 items in inventory. Theodore Boreki asks you, a recent OM graduate, to divide these items into ABC classifications. Fill in the blanks and then answer the following questions. (Round dollar volume to the nearest whole number and percentage of dollar volume to two decimal places.) Item Annual Demand Cost/Unit Dollar Volume % of Total Dollar Volume A2 250 20 5000 .58 B8 4000 12 48,000 5.56 C7 1500 45 67,500 7.81 D1 150 2000 300000 34.72 E9 1000 20 20,000 2.31 F3 60 150 9,000 1.04 G2 200 1500 300,000 34.72 H2 600 20 12,000 1.39 15 J8 58 300 2500 300 5 90,000 12,500 10.42 1.45 For the following two questions consider only items A2 and F3 for relative classification (these are some of the items for which you computed the metrics). Based on the percentages of dollar volume, item A2 should be classified as B C A
Boreki Enterprise has the following 10 items in inventory. Theodore Boreki asks you, a recent OM graduate, to divide these items into ABC classifications. Fill in the blanks and then answer the following questions. (Round dollar volume to the nearest whole number and percentage of dollar volume to two decimal places.) % of Total Dollar Dollar Volume Item Annual Demand Cost/Unit Volume A2 250 20 48,000 67,500 5.56 7.81 B8 4000 12 C7 1500 45 D1 150 2000 E9 1000 20 20,000 2.31 F3 60 150 300,000 12,000 G2 200 1500 34.72 H2 600 20 1.39 15 300 300 J8 2500 12,500 1.45
10 Use the information presented in the graph to answer the following questions: Annual Cost C3 C2 Q1 You are also given the following information: Q1 =450 .Q2 = 700 C1 = 350 C2 = 750 1300 Q2 Order Quantity Which annual inventory cost component does the blue line represent? Total cost Which annual inventory cost component does the green line represent? Holding cost What is the Economic Order Quantity (EQ9) based on th Which annual inventory cost component does the red line represent? Ordering cost 220
Your company has the following items in inventory: Unit Cost $9 $90 $6 Item A B с D E F G H Annual Demand 1200 100 4500 400 35 250 1000 100 $150 $2000 $120 $90 $75 a) What is the annual dollar volume for all items b) Perform an ABC analysis on the data. Which are the A items, the B items and the C item: c) Why is it desirable to classify items into groups, as the ABC classification scheme does? d) Define and discuss the term "productivity" with help of productivity equation.
(a) Ignoring taxation, calculate the optimum order level of inventory over a one-year planning period using the EOQ model. (b) Estimate the level of safety inventory that should be carried by Toyzrfun Ltd. (c) If Toyzrfun Ltd were to be offered a quantity discount by its suppliers of 1% for orders of 30 000 units or more, evaluate whether it would be beneficial for the company to take advantage of the quantity discount. Assume for this calculation that no safety inventory is carried. (d) Estimate the expected total annual costs of inventory management if the EOQ had been (i) 50% higher, and (ii) 50% lower than its actual level. Comment upon the sensitivity of total annual costs to changes in the EOQ.
Use the ABC method of classifying inventory control over the itemsin the following inventory list. Use the total cost per item column to create thelisting. In Excel with formulas Item Annual Usage (in Units) Unit cost ($) Total Cost per Item1 6,000 1.4 8,4002 1,500 10 15,0003 11,000 9.5 104,5004 6,500 2.5 16,2505 8,500 0.6 5,1006 7,000 14.5 101,5007 6,000 0.8…
Replenishment of Regular Stocks of Farmacia Romy & Fe The following are the details regarding the stocks on Paracetamol tab 500 mg of Farmacia Romy & Fe: (a) 150 tablets are sold daily (b) 4 boxes of 100s are on hand as stocks of the drugstore (c) Inventory is every 30 days What should be the Order Quantity for the Paracetamol product? 150 tablets 400 tablets 4,500 tablets 4,900 tablets 50 boxes None of the given choices How is the quantity to be ordered computed or determined? Order Quantity = Average Daily Movement x (X)Days + Regular Order Order Quantity = (Average daily off take x Inventory days ) – Stock-on-hand Order Quantity = (Average daily off take x Inventory days ) + Stock-on-hand Order Quantity = Average Daily Movement x (X)Days -- Regular Order None of the given choices
Please show work so I can understand it. A company decides to establish an EOQ for an item. The annual demand is 200,000 units. The ordering costs are $40 per order, and inventory-carrying costs are $16 per unit per year. Calculate the following: (a). The EOQ in units. (b). Number of orders per year. (c). Annual ordering cost, annual holding cost, and annual total cost
You are the operations manager of a firm that uses the continuous review (EOQ) system to control your inventory. Suppose the firm operates 52 weeks per year, 365 days, and has the following characteristics for its primary item: Demand = 25,000 units/year %3D Ordering Cost = $30/order Holding Cost = $8/unit/year Lead Time = 2 weeks Standard Deviation in weekly demand = 100 units %3D What is the economic order quantity for this item? Between 400 and 450 units O Between 450 and 500 units Fewer than 400 units O Greater than 500 units
Please complete the problem usinf EXCEL, Show ALL formulas Demand for a popular athletic shoe is nearly constant at 800 pairs per week for a regional division of a national retailer. The cost per pair is $54. It costs $72 to place an order, and annual holding costs are charged at 22% of the cost per unit. The lead time is two weeks. a. What is the EOQ? b. What is the reorder point? c. What is the cycle time? d. What is the total annual cost?
It is your responsibility, as the new head of the automotive section of Nichols Department Store, to ensure that reorder quantities for the various items have been correctly established. You decide to test one item and choose Michelin tires, XW size 185 × 14 BSW. A perpetual inventory system has been used, so you examine this as well as other records and come up with the following data: Cost per tire $35 each Holding cost 20 percent of tire cost per year Demand 1,000 per year Ordering cost $20 per order Standard deviation of daily demand 3 tires Delivery lead time 4 days Because customers generally do not wait for tires but go elsewhere, you decide on a service probability of 98 percent. Assume the demand occurs 365 days per year. Determine the order quantity. Note: Round your answer to the nearest whole number. Determine the reorder point. Note: Use Excel's NORM.S.INV() function to find the z value. Round z value to 2 decimal places and final answer to the…