Continuous review inventory system

Assignment Help Accounting Basics

Reference no: EM131026755

Osprey Sports stocks everything that a musky fisherman could want in the Great North Woods. A particular musky lure has been very popular with local fishermen as well as those who buy lures on the Internet from Osprey Sports. The cost to place orders with the supplier is 530/order; the demand averages 4 lures per day. with a standard deviation of I lure; and the inventory holding cost is $1.00/lure/year. The lead time form the supplier is 10 days, with a standard deviation of 3 days. It is important to maintain a 97 percent cycle-service level to properly balance service with inventory holding costs. Osprey Sports is open 350 days a year to allow the owners the opportunity to fish for muskies during the prime season. The owners want to use a continuous review inventory system for this item.

a What order quantity should be used?

b. What reorder point should be used?

c. What is the total annual cost for this inventory system?

Reference no: EM131026755

Questions Cloud

Coolwear inc had balances in accounts receivable and allow : On December 31, 2015, Coolwear Inc. had balances in Accounts Receivable and Allowance for Uncollectible Accounts of $50,000 and $1,350, respectively. During 2016, Coolwear wrote off $625 in accounts receivable and determined that there should be an a..

Can nernst equation be used at temperatures : A voltaic cell is constructed with all reactants and products in their standard states Will this condition hold as the cell operates? Explain. Can the Nernst equation be used at temperatures other than room temperature? Explain.

False accounting reports : "The company's officers and board of directors, including Chairman Kenneth Lay, CEO Jeffrey Skilling and CFO Andy Fastow, were selling their Enron stock at higher prices due to false accounting reports that made the stock seem more valuable than i..

What is the numerical value of the reaction quotient : Under what circumstances is the Nernst equation applicable? What is the numerical value of the reaction quotient, Q, under standard conditions?

Continuous review inventory system : Osprey Sports is open 350 days a year to allow the owners the opportunity to fish for muskies during the prime season. The owners want to use a continuous review inventory system for this item.

Calculate the degrees of reaction at both hub and tip : Determine the flow angles at the hub, mean, and tip radii of both inlet and outlet of the rotor. Also calculate the degrees of reaction at both hub and tip.

How military court had jurisdiction over nazi war criminals : Watch this video and discuss how the military court had jurisdiction over the Nazi war criminals. How did the military court gain jurisdiction? What were the advantages of trying the Nazi's by such a court?

What is the amount of terastars free cash flows for 2016 : Terastar Corp. reports the following amounts for 2015 and 2016. What is the amount of Terastar's free cash flows for 2016?

What is the likely explanation of the crime : What is the likely explanation of the crime? What could be some less likely explanations to this case that you may want to consider?

User Account

All Pages