Average annual transportation inventory for parcel service

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Reference no: EM132232233

1. Elyssa’s Elegant Eveningwear (EEE) needs to ship finished goods from its manufacturing facility to its distribution warehouse. Annual demand for EEE is 2,445 gowns. EEE can ship the gowns via regular parcel service (3 days transit time). Calculate the average annual transportation inventory for the parcel service. (Use 365 days per year)

2. Joe, the owner of Genuine Reproductions (GR), a company that manufactures reproduction furniture, is interested in measuring inventory effectiveness. Last year the cost of goods sold at GR was $3,190,689. The average inventory in dollars was $218,215. Calculate the inventory turnover for GR.

3. Joe, the owner of Genuine Reproductions (GR), a company that manufactures reproduction furniture, is interested in measuring inventory effectiveness. Last year the cost of goods sold at GR was $3,159,968. The average inventory in dollars was $355,314. Calculate the weeks of supply for GR. Assume 52 weeks per year.

4. Sam’s Auto Shop services and repairs a particular brand of foreign automobile. Sam uses oil filters throughout the year. The shop operates 52 weeks per year, and weekly demand is 120 filters Sam estimates that it costs $15 to place an order and his annual holding cost rate is $2 per oil filter. Using this information, calculate the economic order quantity.

Reference no: EM132232233

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