James Inc. wants to compare inventory turnover to industry
Question # 00525368
Posted By:
Updated on: 05/10/2017 03:29 AM Due on: 05/10/2017
1. James Inc. wants to compare inventory turnover to industry leaders who has turnover of about
17 times per year and 9% of their assets invested in inventory. Total assets are $18,500,
Inventory is $2,250, cost of sales is $24,500, and net revenue is $33,500. What is their inventory
turnover, percent of assets committed to inventory, and James’ performance compared to industry
leaders?
17 times per year and 9% of their assets invested in inventory. Total assets are $18,500,
Inventory is $2,250, cost of sales is $24,500, and net revenue is $33,500. What is their inventory
turnover, percent of assets committed to inventory, and James’ performance compared to industry
leaders?
2. Identify three firms that are located near where you live or work and share what you believe is
their competitive advantage.
their competitive advantage.
3. Wormword Inc. faces forecasted demand of the following: Jan 170, Feb 150, March 160, April
190, May 170, June 140. Capacity for these months is 150, 150, 160, 150, 160, 160, and
overtime to make 10 units can be used in all months except March and April. Cost per units are
$55 regular time, $82.50 overtime, subcontracting $80, and inventory costs are $4.50 per month.
Subcontracting capacity is 10 units per month. Beginning inventory is zero and backorders are
not allowed. Develop a plan to minimize total cost and identify your total cost.
190, May 170, June 140. Capacity for these months is 150, 150, 160, 150, 160, 160, and
overtime to make 10 units can be used in all months except March and April. Cost per units are
$55 regular time, $82.50 overtime, subcontracting $80, and inventory costs are $4.50 per month.
Subcontracting capacity is 10 units per month. Beginning inventory is zero and backorders are
not allowed. Develop a plan to minimize total cost and identify your total cost.
4. Design specifications require that a key dimension on a product measures 100 +/- 9 ounces. A
process being considered for producing this product has a standard deviation of 3 ounces.
Calculate the initial process capability and then recalculate when the process average shifts to 91.
What can you say about the capability of the initial and the shifted process?
process being considered for producing this product has a standard deviation of 3 ounces.
Calculate the initial process capability and then recalculate when the process average shifts to 91.
What can you say about the capability of the initial and the shifted process?
5. A large bakery buys flour in 35 pound bags and uses an average of 1,315 per quarter.
Preparing an order and receiving a shipment of flour involves a cost of $11/order. Annual
carrying costs are $85/bag. Determine the economic order quantity, average number of bags on
hand, the number of orders in a year, the total combined costs of ordering and carrying flour.
Also, if ordering costs were increased by $2/order, how would this affect the total annual cost?
Preparing an order and receiving a shipment of flour involves a cost of $11/order. Annual
carrying costs are $85/bag. Determine the economic order quantity, average number of bags on
hand, the number of orders in a year, the total combined costs of ordering and carrying flour.
Also, if ordering costs were increased by $2/order, how would this affect the total annual cost?
-
Rating:
/5
Solution: James Inc. wants to compare inventory turnover to industry