Operations Management
17th Edition
ISBN: 9781259142208
Author: CACHON, Gérard, Terwiesch, Christian
Publisher: Mcgraw-hill Education,
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Chapter 10, Problem 13PA
Summary Introduction
To determine: The monthly inventory turns.
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Given that:
Sales = $300,000,000
Transportation cost = $15,000,000
Warehousing cost = $4,000,000
Inventory carrying cost rate (W) = 30%
Cost of goods sold = $95,000,000
Other operating costs = $55,000,000
Average Inventory (AI) = $15,000,000
Accounts receivable = $35,000,000
What is the earning before interest and taxes?
Group of answer choices
75,500,000
205,500,000
150,500,000
126,500,000
46,500,000
A customer buys 1 ABC Jan 35 put for a premium of $3 and simultaneously buys 100 shares of ABC stock for $35 per share. The customer will break even when the stock is selling for what price per share at expiration?
When a retailer places large order of inventory:
a.
Ordering costs reduces and holding costs increases
b.
Ordering costs reduces and holding costs decreases
c.
Ordering costs increases and holding costs increases
d.
Ordering costs increases and holding costs decreases
Chapter 10 Solutions
Operations Management
Ch. 10 - It is costly to hold inventory, but inventory can...Ch. 10 - A delivery truck from a food wholesaler has just...Ch. 10 - Prob. 3CQCh. 10 - Prob. 4CQCh. 10 - Prob. 5CQCh. 10 - Prob. 6CQCh. 10 - Prob. 7CQCh. 10 - Prob. 8CQCh. 10 - Prob. 9CQCh. 10 - Prob. 10CQ
Ch. 10 - Prob. 11CQCh. 10 - Prob. 1PACh. 10 - Prob. 2PACh. 10 - Prob. 3PACh. 10 - An electronics manufacturer has 25 days-of-supply...Ch. 10 - Prob. 5PACh. 10 - Prob. 6PACh. 10 - Prob. 7PACh. 10 - Prob. 8PACh. 10 - An online shoe retailers annual cost of holding...Ch. 10 - Prob. 10PACh. 10 - Prob. 11PACh. 10 - Prob. 12PACh. 10 - Prob. 13PACh. 10 - Prob. 14PACh. 10 - Prob. 15PACh. 10 - Prob. 16PACh. 10 - A retailer has annual sales of 500,000 and an...Ch. 10 - Prob. 18PACh. 10 - Prob. 19PACh. 10 - Prob. 1CCh. 10 - Prob. 3CCh. 10 - Prob. 4C
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Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, operations-management and related others by exploring similar questions and additional content below.Similar questions
- A manufacturing company producing medical devices reported $60 million in sales overthe last year. At the end of the same year, the company had $20 million worth of inventory of ready-to-ship devices. Assuming that units in inventory are valued (based on costof goods sold) at $1000 per unit and are sold for $2000 per unit, what is the company’sannual inventory turnover?arrow_forwardMost inventory models attempt to minimize a. The likelihood of stockout b. None of these c. The numbers of orders placed d. Total inventory-based cost e The number of items orderedarrow_forwardKnowing how to use the ABC analysis, make up a list of 10 items in a stores inventory, then decide which 10 items sold at the store would constitute 80% of the revenue and create a Word document using the ABC analysis.arrow_forward
- The periodic inventory system O A. works well for businesses in which the inventory is large in size or dollar amount O B. involves the use of inventory costing methods O C. is more difficult to maintain than a perpetual inventory system O D. cannot be used with a specific identification costing methodarrow_forwardCalculate how many of each packet should the store order to maximize the revenue associated with information packets, and what is the store’s expected revenue. WITHOUT EXCELarrow_forward5. Why can it be bad business practice to not maintain adequate inventory? A. Results in high inventory carrying costs B. Results in a long average collection period C. Can result in stockouts and lost business D. Can result in a long average payment period E. None of the above 6. Splodnick Corporation sells 40,000 units of nebulous ambiguities every year. It costs them $100 to order more units, regardless of the order size. It costs Splodnick 63 cents per year to carry each unit. Using the Economic Order Quantity model, what should be Splodnick’s optimal number of units per order? Round your answer to the nearest whole number of units. A. 356 B. 3,563 C. 283 D. 178 E. None of the abovearrow_forward
- 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.arrow_forwardThe total stockout cost = $ enter your response here. (Enter your response as a whole number.)arrow_forwardPlease do not give solution in image format thanku A small mail-order company uses 14,000 boxes a year. Holding cost rate is 18 percent of unit cost per year, and ordering cost is $33 per order. The following quantity discounts are available. Number of Boxes Price per Box 1,000 to 1,999 $1.15 2,000 to 4,999 1.10 5,000 to 9,999 1.05 10,000 or more 1.00 a. Determine the optimal order quantity. Optimal order quantity boxes b. Determine the number of orders per year. (Round the final answer to 1 decimal place.) No. of orders per yeararrow_forward
- Inquiries of warehouse personnel concerning possibly obsolete or slowmoving inventory items provide assurance about management’s assertion ofa. Completeness.b. Existence.c. Presentation.d. Valuationarrow_forwardThe greatest danger a company faces in the theft of inventory is: lack of written procedures on exactly how inventory is to be recorded having no centralized department for receiving and storing merchandise both a and b neither a nor barrow_forwardGiven that: Sales = $300,000,000 Transportation cost = $15,000,000 Warehousing cost = $4,000,000 Inventory carrying cost rate (W) = 30% Cost of goods sold = $95,000,000 Other operating costs = $55,000,000 Average Inventory (AI) = $15,000,000 Accounts receivable = $35,000,000 What is the total operating cost? Group of answer choices 56,500,000 48,500,000 75,500,000 78,500,000 68,500,000arrow_forward
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