Why should one company in a supply chain consider total supply chain inventory as well as its own inventory levels?
Answer to relevant QuestionsAkers 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 ...Suppose management of Foods Galore (in solved problem 3 above) found that it had drastically underestimated its annual inventory carrying cost. Rather than the 10% carrying cost assumed in the solved problem, carrying cost ...Talbot Industries is evaluating its service level policy for a product that is considered critical to customers. Demand for item average 100 units per day and the lead time form the supplier of the item averages 6 days. An ...Jasper’s Grocery places an order for Monster every 3 weeks. Once the order is placed, delivery to the store typically occurs in 1 week. Average demand is 100 cases per week and the standard deviation of demand is 20 ...Suppose Bryson develops a production process that is most efficient when 6,000 yards/day are produced at a cost of $4.50/yard. Everything else remains the same. How does this affect the calculation in problem 29?
Post your question