FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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**Inventory Management Problem: Calculating Orders for Saché, Incorporated**

**Scenario:**
Saché, Incorporated, anticipates selling 1,820 designer suits each week. The retail outlet operates daily, maintaining consistent suit sales throughout the week. The company’s Economic Order Quantity (EOQ) is 1,400 suits, with a safety stock of 260 suits. After placing an order, it takes the company three days to receive the suits.

**Objective:**
Determine the number of orders the company places annually.  
*Note: Do not round intermediate calculations and round your answer to two decimal places (e.g., 32.16).*

**Calculation Box:**
- Orders per year [ ]

**Ordering Schedule:**
Assume it is Monday morning before the store opens, and a new shipment of suits has arrived. Identify the day Saché should place its subsequent order:

- [ ] Monday
- [ ] Tuesday
- [x] Wednesday
- [ ] Thursday
- [ ] Friday

This activity focuses on applying inventory management principles to optimize ordering schedules and quantities.
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Transcribed Image Text:**Inventory Management Problem: Calculating Orders for Saché, Incorporated** **Scenario:** Saché, Incorporated, anticipates selling 1,820 designer suits each week. The retail outlet operates daily, maintaining consistent suit sales throughout the week. The company’s Economic Order Quantity (EOQ) is 1,400 suits, with a safety stock of 260 suits. After placing an order, it takes the company three days to receive the suits. **Objective:** Determine the number of orders the company places annually. *Note: Do not round intermediate calculations and round your answer to two decimal places (e.g., 32.16).* **Calculation Box:** - Orders per year [ ] **Ordering Schedule:** Assume it is Monday morning before the store opens, and a new shipment of suits has arrived. Identify the day Saché should place its subsequent order: - [ ] Monday - [ ] Tuesday - [x] Wednesday - [ ] Thursday - [ ] Friday This activity focuses on applying inventory management principles to optimize ordering schedules and quantities.
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