Ligo's batch of 1,000 boxes of canned sardines gets manufactured in the first week of the month, and another batch of 1,000 in the second week. The batch produced first gets delivered to the warehouse and must be sold first. Ligo uses this inventory method which follows the logic that to avoid obsolescence, they should sell the oldest inventory items first and maintain the newest items in inventory. A) First in, first out B) Last in, first out Just in time

Ligo's batch of 1,000 boxes of canned sardines gets manufactured in the first week of the month, and another batch of 1,000 in the second week. The batch produced first gets delivered to the warehouse and must be sold first. Ligo uses this inventory method which follows the logic that to avoid obsolescence, they should sell the oldest inventory items first and maintain the newest items in inventory. A) First in, first out B) Last in, first out Just in time

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.
Thompson Paint Company uses 60,000 gallons of pigment per year. The cost of ordering pigment is $200 per order, and the cost of carrying the pigment in inventory is $1 per gallon per year. The firm uses pigment at a constant rate every day throughout the year. a. Calculate the EOQ. b. If it takes 20 days to receive an order once it has been placed, determine the reorder point in terms of gallons of pigment. (Note: Use a 365-day year.)
ABC classification divides on-hand inventory into three classes, generally based upon a. item quantity. b. unit price. c. the number of units on hand. d. annual demand. e. annual dollar value.
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 sold
Which one of the following represent FIFO method of inventory evaluation? a. Old merchandise is sold first b. Average number of goods are sold c. Old items remain in inventory d. New merchandise is sold first
On the basis of the following data, estimate the cost of the inventory at June 30 by the retail method: Cost Retail June 1 Inventory $165,000 $275,000 June 1–30 Purchases (net) 2,361,500 3,800,000 June 1–30 Sales 3,550,000 blankCost of the InventoryJune 30 Cost Retail $- Select - $- Select - - Select - - Select - $- Select - $- Select - Ratio of cost to retail price: fill in the blank 10% - Select - $- Select - $- Select -
Charlie’s Pizza orders all of it pepperoni, olives, anchovies, and mozzarella cheese to be shipped directly from Italy. An American distributor stops by every seven weeks to take orders. Because the orders are shipped directly from Ital, they take six weeks to arrive. Charlies Pizza uses an average of 250 pounds of pepperoni each week, with a standard deviation of 18 pounds. Charlie prides itself on offering only the best –quality ingredients and a high level of service, so it wants to ensure a 95 percent probability of not stocking out on pepperoni. Assume that the sales representative just walked in the door and there are currently 470 pounds of pepperoni in the walk-in cooler. How many pounds of pepperoni would you order? (Use the excels NORMSINV( ) function to find the critical value for the given a-level, (Round you z-value to 2 decimal places and final answer t
Inventory tracking is concerend both ith the quantity and the location of the goods in inventory. Select one: a. True. b. False.
Inventory is the raw materials, work-in-process products and finished goods from the portion of a business's assets that are ready or will be ready for sale. Judge THREE (3) effectiveness of perpetual inventory for the food service organization and explain the impact of the system on the purchasing process. Please answer as quick as possible.
Recognize the important relationship between inventory management and delivering the perfectcustomer order
Stationery Supplies orders plastic erasers from a company in Nürnberg, Germany.It takes six weeks to ship the erasers from Germany to Utah. Stationery Suppliesmaintains a standing order of 200 erasers every six months (shipped on the first ofJanuary and the first of July).a. Assuming the ordering policy the store is using does not result in large buildupsof inventory or long-term stock-outs, what is the annual demand for erasers?b. Draw a graph of the pipeline inventory (that is, the inventory ordered but notreceived) of the erasers during one year. What is the average pipeline inventoryof erasers during the year?
The figure on the right shows the inventory levels cherries (in pounds) at one store and the order-reorder periods over 1 year. Refer to the figure to answer the following questions. 180 (a) What is the average amount of cherries in inventory during one order-reorder period? (b) What is the maximum amount of cherries in inventory during one order-reorder period? (c) How many orders were placed during the year? (d) How many pounds of cherries were sold during the year? 1st order arrives End of year (a) What is the average amount of cherries in inventory during one order-reorder period? The average amount of cherries in inventory during one order-reorder period is pounds.