Buckshot Electronics is a chain of electronics superstores that is located throughout California. They have 15...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Buckshot Electronics is a chain of electronics superstores that is located throughout California. They have 15 locations concentrated primarily in heavily populated areas. They sell thousands of products made by hundreds of different manufacturers. Buckshot sells everything from phones, video cameras, and video game consoles to large items like televisions. Sony is one of their larger suppliers. They offer products in nearly every category Buckshot offers to its customers. In fact, Sony sells multiple cell phone models through Buckshot. One such model is the Q9900. One of Buckshot's San Francisco stores is forecasted to sell about 7800 units of the Q9900 in the coming year. This forecasted demand is about average in terms of Buckshot's 15 other California locations. Presently they order 900 units of the Q9900 every 6 weeks. Each store fills weekly orders through its Sony Distributor for items like TV's, cameras, and of course, cell phones, in addition to many other items. Orders for cell phones must be made in increments of 100 units. The distributor takes only one order per week, but Buckshot is not obligated to order every item every week. That order is then shipped 2 days later to that individual Buckshot Electronics location by truck. Buckshot's Central Procurement is looking to save money by investigating order sizes and subsequent order frequency. You are being asked to create a recommendation for order size and time between orders for the Q9900 based on the numbers for this San Francisco location. Answer the questions that follow in order to create a detailed report for your supervisor. for your supervisor. Below are some the key figures important in your analysis: Q9900 Wholesale Price Q9900 Retail Price $ 175.00 $ 299.00 Annual Per Unit Holding Costs are estimated at 35% of the wholesale cost of the Q9900. Costs associated with each order include: Order Placement Fees (Documentation, Network Support) $ 250.00 Delivery (Fuel, Driver, Truck, etc.) Packaging Receiving (Inspection, Documentation, etc.) Labor ( 5 hours @ $10.00/hr) Stocking, Misc. $ 125.00 $ 25.00 $ 25.00 $ 50.00 17. Why is this not possible for this company to use the calculated EOQ as their order size? A. They do not have enough room in their store to use the EOQ as their order size. B. They do not have enough money to afford order sizes as large as the calculated EOQ. C. Orders can only be placed in increments of 100. D. Orders can only be placed in increments of 50. E. The calculated EOQ is smaller than their weekly demand. F. Ordering the calculated EOQ would actually cost them more than using their present order size, 900 units. The store must decide how often they want to order. Remember, the weekly demand is 150 units. If they order weekly, the store will require at minimum 200 units per week. If they order every other week, the store will require at minimum 300 units to get to the next ordering period. 18. If they order every 3 weeks, what will be the minimum required order size? Remember, you must abide by the Sony Distributor's ordering rules. 19. Assume they sell exactly 150 units every three week period. Based on the appropriate answer to the previous question, how many extra units will they have left at the end of each three week period? 20. Based on the ordering scenario where orders are placed every 3 weeks, over a 52 week year, how much extra inventory will this store have accumulated? (Take your answer to #19, divide by 3, and then multiply by 52) 21. If they instead order every 2 weeks what will be the minimum required order size? Remember, you must abide by the Sony Distributor's ordering rules. 22. Assume they sell exactly 150 units per week. Based on the appropriate weekly order size, how many extra units will they have left at the end of the 2 week period? 23. Based on the weekly ordering scenario, over a 52 week year, how much extra inventory will this store have accumulated? (Take your answer to #22, divide by 2, and then multiply by 52) 24. Realistically, which of the following options is more attractive? An attractive option is one where the order size is close or equal to the EOQ, abides by the distributor's ordering rules, and minimizes the amount of unnecessary inventory. A. Order 200 units every week B. Order 300 units every 2 weeks C. Order 361 units every 2.41 weeks D. Order 500 units every 3 weeks Buckshot Electronics is a chain of electronics superstores that is located throughout California. They have 15 locations concentrated primarily in heavily populated areas. They sell thousands of products made by hundreds of different manufacturers. Buckshot sells everything from phones, video cameras, and video game consoles to large items like televisions. Sony is one of their larger suppliers. They offer products in nearly every category Buckshot offers to its customers. In fact, Sony sells multiple cell phone models through Buckshot. One such model is the Q9900. One of Buckshot's San Francisco stores is forecasted to sell about 7800 units of the Q9900 in the coming year. This forecasted demand is about average in terms of Buckshot's 15 other California locations. Presently they order 900 units of the Q9900 every 6 weeks. Each store fills weekly orders through its Sony Distributor for items like TV's, cameras, and of course, cell phones, in addition to many other items. Orders for cell phones must be made in increments of 100 units. The distributor takes only one order per week, but Buckshot is not obligated to order every item every week. That order is then shipped 2 days later to that individual Buckshot Electronics location by truck. Buckshot's Central Procurement is looking to save money by investigating order sizes and subsequent order frequency. You are being asked to create a recommendation for order size and time between orders for the Q9900 based on the numbers for this San Francisco location. Answer the questions that follow in order to create a detailed report for your supervisor. for your supervisor. Below are some the key figures important in your analysis: Q9900 Wholesale Price Q9900 Retail Price $ 175.00 $ 299.00 Annual Per Unit Holding Costs are estimated at 35% of the wholesale cost of the Q9900. Costs associated with each order include: Order Placement Fees (Documentation, Network Support) $ 250.00 Delivery (Fuel, Driver, Truck, etc.) Packaging Receiving (Inspection, Documentation, etc.) Labor ( 5 hours @ $10.00/hr) Stocking, Misc. $ 125.00 $ 25.00 $ 25.00 $ 50.00 17. Why is this not possible for this company to use the calculated EOQ as their order size? A. They do not have enough room in their store to use the EOQ as their order size. B. They do not have enough money to afford order sizes as large as the calculated EOQ. C. Orders can only be placed in increments of 100. D. Orders can only be placed in increments of 50. E. The calculated EOQ is smaller than their weekly demand. F. Ordering the calculated EOQ would actually cost them more than using their present order size, 900 units. The store must decide how often they want to order. Remember, the weekly demand is 150 units. If they order weekly, the store will require at minimum 200 units per week. If they order every other week, the store will require at minimum 300 units to get to the next ordering period. 18. If they order every 3 weeks, what will be the minimum required order size? Remember, you must abide by the Sony Distributor's ordering rules. 19. Assume they sell exactly 150 units every three week period. Based on the appropriate answer to the previous question, how many extra units will they have left at the end of each three week period? 20. Based on the ordering scenario where orders are placed every 3 weeks, over a 52 week year, how much extra inventory will this store have accumulated? (Take your answer to #19, divide by 3, and then multiply by 52) 21. If they instead order every 2 weeks what will be the minimum required order size? Remember, you must abide by the Sony Distributor's ordering rules. 22. Assume they sell exactly 150 units per week. Based on the appropriate weekly order size, how many extra units will they have left at the end of the 2 week period? 23. Based on the weekly ordering scenario, over a 52 week year, how much extra inventory will this store have accumulated? (Take your answer to #22, divide by 2, and then multiply by 52) 24. Realistically, which of the following options is more attractive? An attractive option is one where the order size is close or equal to the EOQ, abides by the distributor's ordering rules, and minimizes the amount of unnecessary inventory. A. Order 200 units every week B. Order 300 units every 2 weeks C. Order 361 units every 2.41 weeks D. Order 500 units every 3 weeks
Expert Answer:
Answer rating: 100% (QA)
Solution 1 What is the annual demand for one store Find D Choose the cl... View the full answer
Posted Date:
Students also viewed these computer network questions
-
The Goodson Company is a chain of retail electronics stores. How much of a loss can Goodson deduct in each of the following cases? Explain. a. An employee drops a 42-inch plasma television, cracking...
-
The Stork Club is a chain of baby clothing stores. The owner of the chain divided a number of bonnets equally among the 7 stores in the chain. If each store got 9 bonnets, what was the number of...
-
The Amberssen Specialty Company is a chain of 12 retail stores that sell a variety of imported gift items, gourmet chocolates, cheeses, and wines in the Toronto area. Amberssen has an IS staff of...
-
A project is at the multi-functional planning phase. The project manager realizes that producing a complex application is not feasible with the current number of resources and decides to hire more...
-
As an alternative method of evaluating a group home, suppose we take 12 adolescents who have been declared delinquent. We take the number of days truant during each of three time periods: (1) the...
-
Propose a structure consistent with the following spectral data for a compound C8H18O2: IR: 3350 cm1. 1H NMR: 1.24 (12 H, singlet); 1.56 (4 H, singlet); 1.95 (2 H, singlet)
-
You build a solenoid containing 400 windings over a \(0.20-\mathrm{m}\) length, with a loop radius of \(0.025 \mathrm{~m}\) for each winding. If the current in the unit is \(3.0 \mathrm{~A}\), what...
-
On December 31, 2013, when its Allowance for Doubtful Accounts had a debit balance of $1,400, Hunt Co. estimates that 9% of its accounts receivable balance of $90,000 will become uncollectible and...
-
6. An igloo, a hemispherical enclosure built of ice (1.67 J/m-sC), has as inner radius of 2.50m. The thickness of the ice is 0.5m. At what rate must thermal energy be generated to maintain the air...
-
Chris and Stefani Watanabe live with their two boys at 1400 Victoria Lane, Riverside, CA 92501. Chris is an accountant who has his own accounting practice. Stefani is an elementary school teacher....
-
What does gross profit margin, operating income margin, and net income margin represent? When is net income margin higher than operating income margin or gross profit margin? How should we handle...
-
Previously we looked at proteins and genes identified to be correlated to Covid-19 severity from this study. The Raw fastq data is deposited at GEO: GSE 157103(See if you can identify the BioProject...
-
You are a vice president of human resources at a local hospital with several direct reports overseeing the company benefits. As the workforce demands change, so should the benefits be offered. As a...
-
Estimate the predicted rating for the user1 for the movie 5 using weighted average rating formula [Smarks] tweigher; 47-2023/1mark Movies/User M1 3 147-202/d/07-1022aa0219-861475 Userl User2 User3...
-
2. Describe and discuss the three most important legal issues in human resources management. Use workplace examples to support your answer. 3. Compare and contrast strategic planning and strategic...
-
The functioning and performance of the financial industry are influenced by the regulatory measures (or instruments or frameworks) adopted and enforced by the government. These measures and...
-
Identify the learning theory primarily represented in Xavier's teaching practice and explain how Xavier created a learning environment to align with the theory. How does Xavier build a learning...
-
What exactly is a prima facie duty? How does an ethic of prima facie duties differ from monistic and absolutist ethical theories?
-
Why is it difficult to convict organized crime leaders?
-
How would an audit not catch missing cash amounts of this magnitude?
-
While Al Capone was clearly the leader of his organization and benefited extensively, what enticed others to participate in his illegal activities?
Study smarter with the SolutionInn App