Do you think the safety stock (safety inventory) could be negative? What is the meaning of a negative safety inventory (hint: safety stock is the difference between the optimal inventory and the average demand)?
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Q: at exactly is the function of finished-goods inventory?
A: THE ANSWER IS AS BELOW:
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- Do you think the safety stock (safety inventory) could be negative? What is the meaning of a negative safety inventory (hint: safety stock is the difference between the optimal inventory and the average demand)?
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- A pharmacist is trying to determine the inventory order and stock levels for a particular drug. The following information is available about the drug. Demand (D) 85 tablets/week Working weeks per year 52 weeks Unit holding cost per year (H) $6 Order cost (S) $44/order Standard deviation of weekly demand (sd) 15 tablets Lead time (L) 2 weeks Desired cycle service level 95% If the pharmacist uses the continuous review (Q) system to control the inventory of the drug, what would be the order quantity and reorder point? If the pharmacist uses the periodic review (P) system to control the inventory of the drug, what would be the review interval and target inventory level? (Hint: Use the EOQ model to derive the review interval P)Why do we use "Specifications or bill of material" in the dependent inventory model?Micro-Electronics Warehouse Headset and Webcam Sale Item Type Reg. Price After Savings Price BuddyChat 200 Headset $34.72 $24.40 BuddyChat 300 Headset $41.27 $34.91 BuddyCam HD Webcam $83.54 $61.46 You have decided to purchase the headset with the greatest markdown percent and the BuddyCam HD webcam in order to take advantage of an "Extra $15 Rebate" offer when you purchase both. What is the markdown percent on your total purchase including the rebate?
- A firm cost of good sold averages P2,000,000 per month, and it keeps an inventory equal to 50% of its monthly cost of good sold on hand at all times. Using a 365 -day year, what is its inventory conversion period? Standford Packing had sales of P3.2 million and a gross profit margin of 35% last year. If Standford inventory averaged P0.4 million last year, What was the length of the average age of inventory?What policy results in stockouts 10% of the time?DAT, Inc. produces digital audiotapes to be used in the consumer audio division. DAT lacks sufficient personnel in its inventory supply section to closely control each item stocked, so it has asked you to determine an ABC classification. Here is a sample from the inventory records: ITEM AVERAGEMONTHLY DEMAND PRICE PER UNIT 1 700 $ 6.00 2 200 4.00 3 2,000 12.00 4 1,100 20.00 5 4,000 21.00 6 100 10.00 7 3,000 2.00 8 2,500 1.00 9 500 10.00 10 1,000 2.00 Develop an ABC classification for these 10 items. Item Monthly Usage ($) Class 1 2 3 4 5 6 7 8 9 10
- H & K Electronic Warehouse sells a 12-pack of AAA batteries, and this is a very popular item. Demand for this is normally distributed, with an average of 50 packs per day and a standard deviation of 16. The average delivery time is 5 days, with a standard deviation of 2 days. Delivery time has been found to be normally distributed. A 96% service level is desired. What is the standard deviation of demand during the lead time? How much safety stock should be carried, and what should be the reorder pointIf 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 2020Maroons Medical Supplies, Inc. must order masks from its supplier in lots of 1 dozen boxes. Given the information provided below, complete the following table: Annual demand 26,000 dozen Cost per order placed P30 Carrying cost 20% Price per dozen P7.80 Order Size (Dozen) 250 500 1,000 2,000 13,000 26,000 Number of orders Average inventory Carrying cost Order cost Total cost 1. What is the EOQ? Please include/fill the table and solve for EOQ. Thank you so much!