Homework Answers
True
As the demand forecasts are more than the stock in hand, the organization needs to buy more inventory to cater to the demand.
ANSWER : Yes.
Current inventory is not enough to meet the demand, so more inventory need to be purchased.
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A store currently has 800 tops and 600 pants in inventory, and forecasts demand for the...
A department store has 700 pairs of purple Capri stretch pants that it must sell in...
A department store has 700 pairs of purple Capri stretch pants that it must sell in the next four weeks. The store manager knows that demand by week for the next four weeks will be linear each week, with the following price-response functions: Week 1: d1(p1) =1,000 -100p1 Week 2: d2(p2) =800 -100p2 Week 3: d3(p3) = 700 - 100p3 Week 4: d4(p4) =600 -100 p4. What is the optimum price the retailer should charge per pair if she only...
A department store has 700 pairs of purple Capri stretch pants that it must sell in...
A department store has 700 pairs of purple Capri stretch pants that it must sell in the next four weeks. The store manager knows that demand by week for the next four weeks will be linear each week, with the following price-response functions: Week 1: d1(p1) =1,000 -100p1 Week 2: d2(p2) =800 -100p2 Week 3: d3(p3) = 700 - 100p3 Week 4: d4(p4) =600 -100 p4 Assume that the demands in the different weeks are independent, that is, that customers...
Discussion Inventory Issue Assume a public company in the semiconductor industry that has been around for...
Discussion Inventory Issue Assume a public company in the semiconductor industry that has been around for a long time. They have some “slow moving” inventory, which has a cost of $150 million. It is material when compared to annual net income, and very material compared to quarterly results. Total inventory at the most recent quarter end was about $600 million. The inventory items in question are what this industry calls service inventory. Basically, it is spare parts that are not...
Manufacturers Inc. (MI) currently has a labor force of 10, which can produce 600 units per...
Manufacturers Inc. (MI) currently has a labor force of 10, which can produce 600 units per period. The labor cost is now $5000 per period per employee. The company has a long-standing rule that does not allow it to make use of any overtime. In addition, the product cannot be subcontracted, due to the specialized nature of the machinery that MI uses to produce it. As a result, MI can only increase/decrease production by hiring or laying off employees. The...
A small manufacturing company has a demand of 800 units of its products per month. The...
A small manufacturing company has a demand of 800 units of its products per month. The process is completed in four stages, which produce the following average percentages of good-quality units: Stage 1 Stage 2 Stage 3 Stage 4 88% 92% 81% 95% How many units of components does it need to buy to satisfy demand? a. 701 – 950 b. 1201 – 1450 c. More than 1450 d. Less than or equal to 700 e. 951 – 1200
A local family sports store sells basketball. The store orders the balls from a manufacturer at...
A local family sports store sells basketball. The store orders the balls from a manufacturer at a cost of $250 per order. The annual holding cost is $6 per unit per year. The purchase price of a basketball is $40 per unit per year. The store has a demand for 48,000 balls per year. The s tock is received 5 working days after an order has been placed. No backorders are allowed. Assume 300 working days a year. a. What...
A company presently has 3 warehouses, each carrying 3,500 units of inventory. With this strategy, the...
A company presently has 3 warehouses, each carrying 3,500 units of inventory. With this strategy, the company is able to meet its demand at 2.5% stockout rate. The company decides to downsize and keep only 2 warehouses. How many units of inventory will the company need to carry at each of the two warehouses if it wants to continue a 2.5% stockout rate? Instead, the company decides to increase the number of warehouses to 4. How many units of inventory...
A real estate investor has the opportunity to purchase land currently zoned residential. If the county...
A real estate investor has the opportunity to purchase land currently zoned residential. If the county board approves a request to rezone the property as commercial within the next year, the investor will be able to lease the land to a large discount firm that wants to open a new store on the property. However, if the zoning change is not approved, the investor will have to sell the property at a loss. Profits (in thousands of dollars) are shown...
1.Emily purchased a building to store inventory for her business. The purchase price was $760,000. Beyond...
1.Emily purchased a building to store inventory for her business. The purchase price was $760,000. Beyond this, Emily incurred the following necessary expenses to get the building ready for use: $10,000 to repair the roof as routine maintenance (did not improve or prolong the life of the asset), $6,000 to make the interior suitable for her finished goods, and $600 in legal fees. What is Emily’s cost basis in the new building? 2.Meg O’Brien received a gift of some small-scale...
Please do the second part only." Prof Mathien has started a new business, and she forecasts...
Please do the second part only." Prof Mathien has started a new business, and she forecasts the following demand for her product (in thousands of units) over the next 5 years:" Directions: Show ALL work. Solve each part of the below problem. Bring work to class via hard copy on due date and submit a copy or picture to the appropriate drop box on Blackboard by the due date/time. 1) A dental office has a mix of procedures and each...
A real estate investor has the opportunity to purchase land currently zoned residential. If the county board approves a request to rezone the property as commercial within the next year, the investor will be able to lease the land to a large discount firm that wants to open a new store on the property. However, if the zoning change is not approved, the investor will have to sell the property at a loss. Profits (in thousands of dollars) are shown...
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