Operations Management: Processes and Supply Chains (12th Edition) (What's New in Operations Management)
12th Edition
ISBN: 9780134741062
Author: Lee J. Krajewski, Manoj K. Malhotra, Larry P. Ritzman
Publisher: PEARSON
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Chapter 12, Problem 4P
Summary Introduction
Interpretation: The average value of inventory that is being held needs to be discussed.
Concept Introduction: Average inventory is the average value of specific goods within a particular time period. It may vary from the median. It is calculated by averaging the sum of the number of points within the starting and ending values.
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The Eagle Machine Company averaged $2 million in inventory last year, and the cost of goods sold was $10 million. Figure 12.5 shows the breakout of raw materials, work-in-process, and finished goods inventories. The best inventory turnover in the company’s industry is six turns per year. If the company has 52 business weeks per year, how many weeks of supply were held in inventory? What was the inventory turnover? What should the company do?
2) Life Cycle Assessment of Glass. Inventory Analysis
Determine, as an example, the second phase (Inventory Analysis) of the Life Cycle Assessment of the glass used for the manufacture of soda bottles.
Green Gardens' owner has asked your advice about a possible problem at his business. Over the last 6 months the large-sized lawn and garden inventory (ie, tables, chairs, planters, etc.) has appeared to be short. The inventory records that employees use to determine what is on hand show that more inventory is available than can actually be located. This has cause frustration and mis-trust in the inventory records for the sales employees. The owner realizes that the problem is bigger than just frustrated employees. He is afraid that inventory is being stolen, a problem he didn't think possible given that these are large items that are not easily moved.
Requirements:
Provide the owner with two internal controls that he could implement to reduce the likelihood of theft of the lawn and garden inventory.
Chapter 12 Solutions
Operations Management: Processes and Supply Chains (12th Edition) (What's New in Operations Management)
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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
- B15. The restaurant uses 24 bottles of wine to operate and it has 3 bottles in hand. Calculate the Desired Ending Inventory (DEl) if the number of days in the delivery period is 2 and the safety factor is 10%. Using the Periodic Order Method, calculate the number of bottles that the restaurant should order.arrow_forwardAn assembly plant uses an average of 4000 engines a year. Preparing an order and receiving a shipment of engines involves a cost of $100 per order. Annual carrying costs are $750 per engine. a. Determine the economic order quantity. b. What is the average number of engines on hand? c. How many orders per year will be there? d. Compute total cost of ordering and carrying engines.arrow_forwardA Maintains a particular gym. 55% on a gross murgain of all it's training products. In April the gym had a beginning inventory of 142, 000 net Purchases of 202,000 and net sales of 433,000, to estimate Use grass profit method Cost (in #1) of ending inventory?arrow_forward
- Why is there a need to balance the inventory needs with customer’s needs?arrow_forwardWhy does inventoryflow so quickly through a Frito-Lay plant?arrow_forwardCyberphone, a manufacturer of cell phone accessories, ended the current year with annual sales (at cost) of $72 million. During the year, the inventory of accessories turned over eight times. For the next year, Cyberphone plans to increase annual sales (at cost) by 18 percent. a. What is the increase in the average aggregate inventory value required if Cyberphone maintains the same inventory turnover during the next year? $nothing. (Enter your response as an integer.) b. What change in inventory turns must Cyberphone achieve if, through better supply chain management, it wants to support next year's sales with no increase in the average aggregate inventory value? nothing turns. (Enter your response rounded to one decimal place.)arrow_forward
- Cyberphone, a manufacturer of cell phone accessories, ended the current year with annual sales (at cost) of $42 million. During the year, the inventory of accessories turned over six times. For the next year, Cyberphone plans to increase annual sales (at cost) by 24 percent. a. What is the increase in the average aggregate inventory value required if Cyberphone maintains the same inventory turnover during the next year? $. (Enter your response as an integer.) b. What change in inventory turns must Cyberphone achieve if, through better supply chain management, it wants to support next year's sales with no increase in the average aggregate inventory value? turns. (Enter your response rounded to one decimal place.)arrow_forwardOver the past 5 weeks, demand for wine at Winston's Winery has averaged 1,940 bottles, and the variance of demand has been 874,250 bottles. Winston has ordered an average of 1,940 bottles per week over that time period, with a variance of orders of 1,941,750 bottles. a) The bullwhip measure for glass bottles for Winston's Winery is ___ b) Winston winery is providing _____ in its supply chain. -an amplification effect -a smoothing effectarrow_forwardWhy does inventory flow so quickly through a Frito-Lay plant?arrow_forward
- Give study case in real life Production or Service Company applying any Inventory Management.arrow_forwardCyberphone, a manufacturer of cell phone accessories, ended the current year with annual sales (at cost) of $56 million. During the year, the inventory of accessories turned over eight times. For the next year, Cyberphone plans to increase annual sales (at cost) by 31 percent. a. What is the increase in the average aggregate inventory value required if Cyberphone maintains the same inventory turnover during the next year? $ . (Enter your response as an integer.) b. What change in inventory turns must Cyberphone achieve if, through better supply chain management, it wants to support next year's sales with no increase in the average aggregate inventory value? turns. (Enter your response rounded to one decimal place.)arrow_forwardThe super discount store open 24 hours a day every day 365 days sells eight packs of paper towels at the rate of approximately 420 packs per week because the towers are so broke the annual cost to carry them in inventory is estimated at $.50 the cost to place an order for more is $20 and it takes four days for an order to arrive what is the cycle time? total cost?arrow_forward
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