Reference no: EM131488483

1. James Inc. wants to compare inventory turnover to industry leaders who has turnover of about 17 times per year and 9% of their assets invested in inventory.  Total assets are $18,500, Inventory is $2,250, cost of sales is $24,500, and net revenue is $33,500. What is their inventory turnover, percent of assets committed to inventory, and James' performance compared to industry leaders?

2. Identify three firms that are located near where you live or work and share what you believe is their competitive advantage.

3. Wormword Inc. faces forecasted demand of the following: Jan 170, Feb 150, March 160, April 190, May 170, June 140.  Capacity for these months is 150, 150, 160, 150, 160, 160, and overtime to make 10 units can be used in all months except March and April.  Cost per units are $55 regular time, $82.50 overtime, subcontracting $80, and inventory costs are $4.50 per month. Subcontracting capacity is 10 units per month.  Beginning inventory is zero and backorders are not allowed.  Develop a plan to minimize total cost and identify your total cost.

4. Design specifications require that a key dimension on a product measures 100 +/- 9 ounces. A process being considered for producing this product has a standard deviation of 3 ounces. Calculate the initial process capability and then recalculate when the process average shifts to 91. What can you say about the capability of the initial and the shifted process?

5. A large bakery buys flour in 35 pound bags and uses an average of 1,315 per quarter. Preparing an order and receiving a shipment of flour involves a cost of $11/order. Annual carrying costs are $85/bag. Determine the economic order quantity, average number of bags on hand, the number of orders in a year, the total combined costs of ordering and carrying flour.  Also, if ordering costs were increased by $2/order, how would this affect the total annual cost?