Akers Inc. maintains average inventory of $1,000,000 (at cost). Last year, Akers sales volume was $10,000,000 and cost of goods sold was $7,000,000. Akers has determined that its inventory carrying cost is 15% annually. What was the inventory turnover rate? How much was inventory carrying cost for the year?
Answer to relevant QuestionsThe following table contains data about the inventory for 5 items at Jones Corporation. Complete the missing items in the table. Suppose Thomas Toys Ltd. (in solved problem 4) decides to reduce the review period from 21 days to 10 days. Rework the problem assuming everything else remains the same. Johnson Corporation has the following information about a product that it carries in stock: Average demand = 40 units per day Average lead time = 15 days Item unit cost = $55 for orders of less than 400 units Item unit cost ...Dreyfus Company has a policy of counting on-hand inventory of one of its products every 45 days. When a replenishment order for the product is placed with the supplier, lead time is 8 days. Demand for the product averages 6 ...After implementing the change described in problem 30, Bryson Carpet Mills now finds that it can reduce setup cost to $500. Does this further change the calculations of production order quantity? How?
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