Reference no: EM13966827
The Marlin Company operates 50 weeks a year, and its cost of goods sold last year was $1,800,000. The firm carries six items in inventory: three raw materials, two work-in-process items, and one finished good. The following table shows the company’s last year’s average inventory levels for these items, along with their unit values.
Category Part Number Average Inventory Units Value per Unit
Raw Materials RM-1 1750 $15
RM-2 1500 $ 20
RM-3 1900 $ 10
Work-in-process WIP-1 1500 $40
WIP-2 1300 $50
Finished Goods FG-1 1000 $120
a. What is their average aggregate inventory value?
b. How many weeks of supply does the firm have?
c. What was their inventory turnover last year?
d. The turnover ratio is widely used because it is a common measure that links to the financial statements of the firm. Discuss the benefits and drawbacks of using this measure.
|
How many containers are needed
: A JIT system uses kanban cards to authorize movement of incoming parts. In one portion of the system, a work center uses an average of 93 parts per hour while running. The manager has assigned an inefficiency factor of .13 to the center. How many con..
|
|
Advantages to community treatment for juvenile offenders
: If youths violate the rules of probation, should they be placed in a secure institution? Is juvenile restitution fair? Should a poor child have to pay back a wealthy victim? What are the most important advantages to community treatment for juvenile o..
|
|
Act of aggression against other countries
: Is war ever justified? If so, under what circumstances? Is terrorism every morally justified? If so, under what circumstances? Can you think of a time the United States engaged in terrorism (this doesn't have to be an act of aggression against other ..
|
|
Individual components and the input and output of components
: Which of the following statements about systems theory is NOT true? It concentrates on individual components and the input and output of those components. It provides the conceptual foundation on which the development of information systems is based...
|
|
What is their average aggregate inventory value
: The Marlin Company operates 50 weeks a year, and its cost of goods sold last year was $1,800,000. The firm carries six items in inventory: three raw materials, two work-in-process items, and one finished good. What is their average aggregate inventor..
|
|
Use in making each pound of sausage at a minimum cost
: Ima Hogg wants to determine the quantity of ingredients to use in making each pound of sausage at a minimum cost. The available ingredients and their relevant data are: Hog bellies cost $.30, and contain 3 ounces of protein, 5 ounces of fat, and 6 ou..
|
|
Explain purpose of gantt chart-performance improvement
: Explain the purpose of a Gantt chart. Provide an example of how a Gantt chart might be used in the performance improvement process. UC Hospital’s surgical center is reporting 24 surgical patients experienced complications with post-op procedure care ..
|
|
What is its effective capacity
: In a job shop, effective capacity is only 45 percent of design capacity, and actual output is 63 percent of effective output. What design capacity would be needed to achieve an actual output of 12 jobs per week? What is its effective capacity?
|
|
Addition of new plant to absorb the backlog of demand
: A producer of pottery is considering the addition of a new plant to absorb the backlog of demand that now exists. The primary location being considered will have fixed costs of $15,400 per month and variable costs of $0.98 per unit produced.
|