Ans: Third quarter -Balance: 48600 pounds
Third Quarter Balance September : 0 pounds
Average pounds for the quarter :48600/2= 24300 pounds
Total Investment (24300*$27 per pound of glass) =$656,100
Interest rate per quarter =(8%/4) =2%
Inventory financing per quarter =$656,100*2%=$13,122
No of pounds per quarter =48600
Additional cost per pound =$12636/48,600
=$0.26 per pound.
Lean Principles Lean Principles Soft Glow, Inc. manufactures light bulbs. Its purchasing policy requires that the...
Lean Principles Soft Glow, Inc. manufactures light bulbs. Its purchasing policy requires that the purchasing agents place each quarter’s purchasing requirements out for bid. This is because the Purchasing Department is evaluated solely by its ability to get the lowest purchase prices. The lowest bidder receives the order for the next quarter (90 working days). To make its bulb products, Soft Glow requires 48,600 pounds of glass per quarter. Soft Glow received two glass bids for the third quarter, as...
Soft Glow, Inc. manufactures light bulbs. Its purchasing policy requires that the purchasing agents place each quarter’s purchasing requirements out for bid. This is because the Purchasing Department is evaluated solely by its ability to get the lowest purchase prices. The lowest bidder receives the order for the next quarter (90 working days). To make its bulb products, Soft Glow requires 57,600 pounds of glass per quarter. Soft Glow received two glass bids for the third quarter, as follows: Mid-States...
Lean Principles Bright Night, Inc., manufactures light bulbs. Its purchasing policy requires that the purchasing agents place each quarter’s purchasing requirements out for bid. This is because the Purchasing Department is evaluated solely by its ability to get the lowest purchase prices. The lowest bidder receives the order for the next quarter (90 working days). To make its bulb products, Bright Night requires 54,000 pounds of glass per quarter. Bright Night received two glass bids for the third quarter, as...
Lean Principles Bright Night, Inc., manufactures light bulbs. Its purchasing policy requires that the purchasing agents place each quarter's purchasing requirements out for bid. This is because the Purchasing Department is evaluated solely by its ability to get the lowest purchase prices. The lowest bidder receives the order for the next quarter (9 working days). To make its bulb products, Bright Night requires 52,200 pounds of glass per quarter. Bright Night received two glass bids for the third quarter, as...
Lean PrinciplesSoft Glow, Inc. manufactures light bulbs. Its purchasing policy requires that the purchasing agents place each quarter’s purchasing requirements out for bid. This is because the Purchasing Department is evaluated solely by its ability to get the lowest purchase prices. The lowest bidder receives the order for the next quarter (90 working days).To make its bulb products, Soft Glow requires 55,800 pounds of glass per quarter. Soft Glow received two glass bids for the third quarter, as follows:Mid-States Glass...