User Account

All Pages

What is the shop current average inventory level

Assignment Help Operation Management
Reference no: EM132910289

One of the top-selling items at a gift shop at Hilo, HI are autographed pictures of Jack Star. Sales are 18 pictures per week, and the supplier charges $60 per picture. Currently the gift shop orders a 6-week supply at one time from the supplier. The total cost of placing each order is $45. Annual holding costs are $15 per picture. Assume that the shop operates 52 weeks/year.

A) What is the shop's current average inventory level?

B) What is the shop's current annual inventory holding cost?

C) What is the shop's current annual ordering cost (total cost of placing orders over the entire year)?

D) If the shop wishes to minimize total annual cost, what size orders should be placed?

E) At the optimal ordering quantity, what is the ordering and inventory holding cost per picture sold?

F) At the optimal ordering quantity, what is the shop's inventory turns per year?

Reference no: EM132910289

Questions Cloud

What is present value factor of rm cash flow to be received : What is the present value factor of a RM1 cash flow to be received annually at the end of each of the next 3 years if the discount rate is 15 percent?
What is the bond coupon rate : A 15-year Treasury bond is issued with face value of $1,000. If market yields increase shortly after the T-bond is issued, what is the bond's coupon rate?
How much are the balances of ordinary share capital : Purchased 15,000 ordinary shares at $52 to be held at treasury. How much are the balances of Ordinary Share Capital
Engaged in argument that seemed unresolvable : Many people have either engaged in an argument that seemed unresolvable or witnessed such an argument between friends and family members.
What is the shop current average inventory level : One of the top-selling items at a gift shop at Hilo, HI are autographed pictures of Jack Star. Sales are 18 pictures per week, and the supplier charges $60 per
Why should choose the cash basis accounting instead : Why should choose the cash basis accounting instead of the accrual basis accounting? Many people feel that accrual basis accounting leads to more accurate.
Identify specific reporting differences between standards : Identify specific reporting differences between the standards. Identify which resource best meets the goals of reporting companies in a given country
Name any four process analysis tools : Name any four (4) Process Analysis Tools and the main elements of each tool
Make shareholder equity of diamond company : Make Shareholder's equity of Diamond Company. Ordinary shares, 6,000 shares at P120; cash consideration received P600,000; 75% subscribers are fully paid.

Reviews

Write a Review

Operation Management Questions & Answers

  Book review - the goal

Operations Management is about a book review. Title of the book is "Goal". This book has been written by Dr. Eliyahu Goldartt. The book has been appreciated by many as one of those books which offers an insight into the operations and strategic capac..

  Operational plan in hospitality enterprise

Operational plan pertaining to a hospitality enterprise is given in detail in the solution. The operational plan is an important plan or preparation which gives guidelines regarding the role and responsibilities of each and every operation at all lev..

  Managing operations and information

Recognise the importance of a strategic approach to the development and deployment of organisational information systems. Demonstrate an understanding of the importance of databases and their integration to the organisation's overall information mana..

  A make-or-buy analysis

An analysis of the holding costs, including the appropriate annual holding cost rate.

  Evolution and contributor of operations management

Briefly explain Evolution and contributor of Operations management.

  Functions and responsibilities of an operations manager

A number of drivers of change have transformed the roles, functions and responsibilities of an operations manager over recent years. These drivers have not only been based on technological innovations but also on the need for organisations to develop..

  Compute the optimal order quantity

Compute the Optimal Order quantity of DVD players. Determine the appropriate reorder point.

  Relationship to operations practice in the organisation

Evaluate problems in operations and identify approaches to overcoming them. Critically evaluate operating plans and identify areas for improvement. Justify, implement and evaluate changes to operations in line with modern approaches.

  A make or buy analysis

Develop a report for Figi Fabricating that will address the question of whether the company should continue to purchase the part from the supplier or begin to produce the part itself.

  Prepare a staffing plan

Prepare a staffing plan showing the change of your unit from medical/surgical staffing to oncology staffing.

  Leadership styles in different organizations

Ccompare the effectiveness of different leadership styles in different organizations

  Risk management tools and models

Be able to understand the concept of risk, roles and responsibilities for risk management and risk management tools and models.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd