1. What is the ICC%? (to the nearest tenth of a percent)

2. What is the value of R?

3. What is the value of V?

4. What is the value of S? (to the nearest cent)

5. What is the value of Q?

6. If the company plans to close 12 of their warehouses over the next 12 months, how much inventory should they expect to have a year from now?

7. How much safety stock should the company hold if it wants to ensure a 98.3% service level?

Daily sales = 325 units

Cost of capital = 22.5%

Std. deviation of daily demand = 39

Inventory Risk = 1.5%

Cost to place an order = $30

Storage space = 5.5%

Freight cost = $250

Insurance = 0.75%

Avg. Inventory (last 12 months) = 2,750 units

Current number of warehouses = 24

Cost of 1 unit of inventory = $125

Prime interest rate = 3.9%

Cost of Goods Sold = $14,828,125

Taxes = 1.25%

Selling price of 1 unit = $250

Average annual depreciation = 15.5%

Avg. replenishment cycle = 11 days

Std. dev. of replenishment cycle =3 days

Average inventory value = $343,750

Forecast error = 12.5%

Re-stock fee is $55

Days in a year = 365

Answer rating: 100% (QA)

1 What is the ICC to the nearest tenth of a percent Inventory carrying cost 225 15 55 075 125 3150 2 ... View the full answer