Please respond to the following item questions: Item 1: Explain the importance of inventory, key decisions...
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Please respond to the following item questions: Item 1: Explain the importance of inventory, key decisions and costs. Provide examples. Item 2 Describe how to conduct an ABC inventory analysis, with an example (product or business) Item 3: Problem: The sales of mouthwash at MARKAL Pharmacy over the past 6 months have averaged 2,000 cases per month, which is the current order quantity. Markal's cost is $12.00 per case. The company estimates its cost of capital to be 12 percent. Insurance, taxes, breakage, handling, and pilferage are estimated to be approximately 6 percent of item cost. The cost of of placing an order is $38.00. What is economic order quantity? What is the total inventory cost under economic order quantity? Compare the total cost savings with the current purchase order of 2000 case per month. Show all calculation. Item 4: Explain how a fixed-period inventory system operates. Provide example. Under what circumstances, fixed-period inventory system is useful. Item 5: What's the impact of managing inventories in Supply Chains? (planning, sourcing, making, delivery, return, and enable) Please respond to the following item questions: Item 1: Explain the importance of inventory, key decisions and costs. Provide examples. Item 2 Describe how to conduct an ABC inventory analysis, with an example (product or business) Item 3: Problem: The sales of mouthwash at MARKAL Pharmacy over the past 6 months have averaged 2,000 cases per month, which is the current order quantity. Markal's cost is $12.00 per case. The company estimates its cost of capital to be 12 percent. Insurance, taxes, breakage, handling, and pilferage are estimated to be approximately 6 percent of item cost. The cost of of placing an order is $38.00. What is economic order quantity? What is the total inventory cost under economic order quantity? Compare the total cost savings with the current purchase order of 2000 case per month. Show all calculation. Item 4: Explain how a fixed-period inventory system operates. Provide example. Under what circumstances, fixed-period inventory system is useful. Item 5: What's the impact of managing inventories in Supply Chains? (planning, sourcing, making, delivery, return, and enable)
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Item 1 Importance of Inventory Key Decisions and Costs Inventory is crucial for businesses as it impacts various aspects including customer service production and finances Key decisions related to inv... View the full answer
Related Book For
Management Accounting Information for Decision-Making and Strategy Execution
ISBN: 978-0137024971
6th Edition
Authors: Anthony A. Atkinson, Robert S. Kaplan, Ella Mae Matsumura, S. Mark Young
Posted Date:
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