Discuss ANY FOUR (4) functions of inventory in the operations of a firm... Study the information...

 

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Discuss ANY FOUR (4) functions of inventory in the operations of a firm... Study the information below and answer the questions that follow. Focus Retail Inc. has projected to sell 4 000 000 bottles of a popular brand of South African wine during the 2022 financial year. It costs Focus Retail Inc. R1 000 to place an order. Focus Retail Inc. purchases each bottle of the wine for R100 and the carrying cost per bottle of wine is R1.40 per year. The consignment of the wine is received at Focus Retail's distribution centre 3 days after the placement of an order. 4.2.1 Determine the economic order quantity of the bottles of wine. Calculate the number of orders expected to be placed in the year 2022. 4.2 4.2.2 2.4 (4 marks) (3 marks) (3 marks) 4.2.3 Assuming that Focus Retail Inc. operates on every single day in the year 2022, determine the reorder point in terms of bottles of wine (ignore the safety stock). Calculate the total ordering costs and total carrying costs of the bottles of wine for the 2022 year. (6 marks) (4 marks) Discuss ANY FOUR (4) functions of inventory in the operations of a firm... Study the information below and answer the questions that follow. Focus Retail Inc. has projected to sell 4 000 000 bottles of a popular brand of South African wine during the 2022 financial year. It costs Focus Retail Inc. R1 000 to place an order. Focus Retail Inc. purchases each bottle of the wine for R100 and the carrying cost per bottle of wine is R1.40 per year. The consignment of the wine is received at Focus Retail's distribution centre 3 days after the placement of an order. 4.2.1 Determine the economic order quantity of the bottles of wine. Calculate the number of orders expected to be placed in the year 2022. 4.2 4.2.2 2.4 (4 marks) (3 marks) (3 marks) 4.2.3 Assuming that Focus Retail Inc. operates on every single day in the year 2022, determine the reorder point in terms of bottles of wine (ignore the safety stock). Calculate the total ordering costs and total carrying costs of the bottles of wine for the 2022 year. (6 marks) (4 marks)

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Four functions of inventory in the operations of a firm are 1 Meeting customer demand Inventory allows a firm to have products readily available to me... View the full answer