Cycle inventories are used to:Select one:A. reduce the number of setups.B. protect against disruptions due to unplanned events.C. avoid an anticipated change in supply, demand, or price, and protect against disruptions due tounplanned events.D. accommodate different rates or patterns of demand.E. avoid an anticipated change in supply, demand, or price.

Businesses use cycle inventories as a form of inventory management strategy to manage their stock of…

Answered: Cycle inventories are used to: Select…

Understanding Business

12th Edition

ISBN:9781259929434

Author:William Nickels

Publisher:William Nickels

Chapter1: Taking Risks And Making Profits Within The Dynamic Business Environment

Section: Chapter Questions

Problem 1CE

See similar textbooks

Similar questions

Which of the following is a valid approach to introduce safety stock for dependent demand items? None of the other answer choices are correct. Safety stock is never introduced for dependent demand items A, B, and C are all valid approaches A. Increase the replenishment order by a quantity specified by some estimate of expected plan error B. Add Safety Time into the requirements plan C. Utilize statistical techniques to set safety stocks directly for a dependent demand item
Develop a measure of risk to go along with the ordering policy. This measure should be quantifiable.
Discuss ways (at least 3) in which a company can reduce the need for inventories?
In a short article on Pros and Cons of Re-Order Control and Cycle Inventory Tracking Systems, please clarify it to me.
9. XYZ has developed the following data from its Material A Safety stock Average (normally) daily use Maximum daily use Minimum daily use ЕOQ Cost of placing an order Working days per year 280 200 240 180 1,000 P20 250 days Lead time 6 days What is the cost of carrying an inventory per unit per year? 10. XYZ has developed the following data from its Material A Safety stock Average (normally) daily use Maximum daily use Minimum daily use EOQ Cost of placing an order Working days per year 280 200 240 180 1,000 P20 250 days Lead time 6 days What is the average inventory?
Jitsmart is a retailer of plastic action-figure toys. The actionfigures are purchased from Tacky Toys, Inc., and arrive inboxes of 48. Full boxes are stored on high shelves out of reachof customers. A small inventory is maintained on child-levelshelves. Depletion of the lower-shelf inventory signals theneed to take down a box of action figures to replenish theinventory. A reorder card is then removed from the box andsent to Tacky Toys to authorize replenishment of a containerof action figures. The average demand rate for a popular ac-tion figure, Agent 99, is 36 units per day. The total lead time(waiting plus processing) is 11 days. Jitsmart’s safety stockypolicy variable, a, is 0.25. What is the authorized stock levelfor Jitsmart?
Romulo Drugstore sells 10 bottles of Paracetamol syrup Strawberry flavor 60 mL a day, and 15 bottles on holidays and weekends. It takes 5 days for the supplier to deliver the order; and on peak seasons and certain occasions, the supplier takes 10 days to deliver the ordered items. What should be the safety stock level of the said item? 20 bottles 25 bottles 100 bottles 175 bottles
6. The demand for a particular part called SKU 005 is 1,500 units a year. The cost of one SKU 005 is $40.00. It costs $50.00 to place an order for SKU 005, and the user of SKU 005 has a per year inventory carrying cost of 25% of unit cost. Assume 250 working days in the year where SKU 005 is used. (Noteshaper: Scenario #26) а. What is the combined annual holding and ordering cost of an order size of 200 units for SKU 005? b. How many of SKU 005 should be ordered, to minimize combined ordering and holding costs? c. The vendor who sells SKU 005 has just offered a 5% discount for orders of 500 or more. Now how many should be ordered? d. Once the purchasing manager for SKU 005 places an order, the vendor requires 7 working days to deliver that order. What should be the purchasing manager's reorder point?
Sitka Industries uses a cost system that carries direct materials inventory at a standard cost. The controller has established these standards for one ladder (unit): StandardQuantity x StandardPrice = StandardCost Direct materials 3 pounds $4.50 per pound $13.50 Direct labor 2.00 hours 12.00 per hour 24.00 Total cost $37.50 Sitka Industries made 2,900 ladders in July and used 8,500 pounds of material to make these units. Sitka Industries bought 15,400 pounds of material in the current period. There was a $300 unfavorable direct materials price variance. Enter all amounts as positive numbers. A. How much in total did Sitka pay for the 15,400 pounds? B. What is the direct materials quantity variance? C. What is the total direct materials cost variance? D. What if 9,200 pounds were used to make these ladders, what would be the direct materials quantity variance? E. If there was a $340 favorable direct materials price variance, how much did Sitka pay…
Statement 1 – For providing higher service levels an organization must hold higher levels of inventory. Statement 2 – A perfect order is a key measure of supply chain performance a. True, True b. False, True c. True, False d. False, False
Transactional relationships are most appropriate for suppliers of ________ inventory types. Group of answer choices Critical Leverage Routine None of these answers
This is in fact a production or operations scheduling system and not an inventory control system. It eliminates the holding of inventory and is based on requiring suppliers to deliver materials of the right quality to the business on the day they are needed and where they are needed.(1) Cyclical‐ordering system.(2) Materials‐requirements planning.(3) Just in time.(4) System of fixed‐order quantities.(5) Quick response system.

SEE MORE QUESTIONS

Recommended textbooks for you

Understanding Business

Management

ISBN:

9781259929434

Author:

William Nickels

Publisher:

McGraw-Hill Education

Management (14th Edition)

Management

ISBN:

9780134527604

Author:

Stephen P. Robbins, Mary A. Coulter

Publisher:

PEARSON

Spreadsheet Modeling & Decision Analysis: A Pract…

Management

ISBN:

9781305947412

Author:

Cliff Ragsdale

Publisher:

Cengage Learning

Understanding Business

Management

ISBN:

9781259929434

Author:

William Nickels

Publisher:

McGraw-Hill Education

Management (14th Edition)

Management

ISBN:

9780134527604

Author:

Stephen P. Robbins, Mary A. Coulter

Publisher:

PEARSON

Spreadsheet Modeling & Decision Analysis: A Pract…

Management

ISBN:

9781305947412

Author:

Cliff Ragsdale

Publisher:

Cengage Learning

Management Information Systems: Managing The Digi…

Management

ISBN:

9780135191798

Author:

Kenneth C. Laudon, Jane P. Laudon

Publisher:

PEARSON

Business Essentials (12th Edition) (What's New in…

Management

ISBN:

9780134728391

Author:

Ronald J. Ebert, Ricky W. Griffin

Publisher:

PEARSON

Fundamentals of Management (10th Edition)

Management

ISBN:

9780134237473

Author:

Stephen P. Robbins, Mary A. Coulter, David A. De Cenzo

Publisher:

PEARSON

SEE MORE TEXTBOOKS