Compare and contrast the management of finished goods inventory in a manufacturing firm with that in a retail or wholesale firm.
Answer to relevant QuestionsFor a given service level, why does a P system re quire a larger inventory investment than a Q system? What factors affect the magnitude of the difference? The Suregrip Tire Company carries a certain type of tire with the following characteristics: Average annual sales = 600 tires Ordering cost = $40 per order Carrying cost = 25 percent per year Item cost = $50 per tire ...The famous Widget Company sells widgets at the rate of 80,000 units per year. Each widget sells for $100, and it costs 30 percent to carry widgets in inventory for a year. The process of widget production has been automated ...A producer of electronic parts wants to take account of both production rate and demand rate in deciding on its lot sizes. A particular $50 part can be produced at a rate of 1000 units per month, and the demand rate is 200 ...With regard to inventory management, discuss the difference between a replenishment philosophy and a requirements philosophy.
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