Holland believes that simulation is a useful approach to assess various inven- tory control alternatives. The...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Holland believes that simulation is a useful approach to assess various inven- tory control alternatives. The historical data from Table 9.3 could be used to develop attractive inventory policies. The table was developed to record various costs and evaluate different alternatives. An example showing some recent DRAM inventory decisions is shown in Table 9.4. 1. Design a new inventory system for Swift Electronic Supply, Inc., using the data provided. 2. Provide the rationale for your system, which should include the decision rules you would follow to determine how much to order and when. TABLE 9.3 HISTORICAL DEMAND DATA FOR THE DRAM (UNITS) Day 1 2 3 4 5 6 7 8 9 10 11 12 13 15 14 15 16 17 18 19 20 Demand Day Demand Day 869 21 663 41 902 22 1,146 42 1,109 23 1,016 43 947 24 1,166 44 968 25 829 45 917 26 723 46 1,069 27 749 47 1,086 28 766 48 1,066 29 996 49 929 30 50 1,022 31 51 959 32 52 756 33 53 882 34 54 829 35 55 726 36 56 666 37 57 879 38 58 1,086 39 59 992 40 60 1,122 962 829 862 793 1,039 1,009 979 976 856 1,036 Demand 959 703 823 862 966 1,042 889 1,002 763 932 1,052 1,062 989 1,029 823 942 986 736 1,009 852 TABLE 9.4 EXAMPLE SIMULATION Day Beginning inventory position Number ordered Daily demand Day-ending inventory Ordering costs ($200 per order) Holding costs ($0.05 per piece per day) Shortage costs ($2 per piece) Total cost for day Cumulative cost from last day Cumulative costs to date 1 1,700 1,500 869 831 200 41.55 0 241.55 0.00 241.55 2 831 902 -71 0.00 142 142.00 241.55 383.55 3 1,500 3,000 1,109 391 200 19.55 391 1,200 947 -556 200 0.00 0 5 3,000 968 2,032 6 3,232 917 2,315 101.60 115.75 1,112 0 0 219.55 1,312.00 101.60 115.75 383.55 603.10 1,915.10 2,016.70 603.10 1,915.10 2,016.70 2,132.45 7 2,315 1,900 1,069 1,246 200 62.30 0 262.30 2,132.45 2,394.75 8 9 10 Holland believes that simulation is a useful approach to assess various inven- tory control alternatives. The historical data from Table 9.3 could be used to develop attractive inventory policies. The table was developed to record various costs and evaluate different alternatives. An example showing some recent DRAM inventory decisions is shown in Table 9.4. 1. Design a new inventory system for Swift Electronic Supply, Inc., using the data provided. 2. Provide the rationale for your system, which should include the decision rules you would follow to determine how much to order and when. TABLE 9.3 HISTORICAL DEMAND DATA FOR THE DRAM (UNITS) Day 1 2 3 4 5 6 7 8 9 10 11 12 13 15 14 15 16 17 18 19 20 Demand Day Demand Day 869 21 663 41 902 22 1,146 42 1,109 23 1,016 43 947 24 1,166 44 968 25 829 45 917 26 723 46 1,069 27 749 47 1,086 28 766 48 1,066 29 996 49 929 30 50 1,022 31 51 959 32 52 756 33 53 882 34 54 829 35 55 726 36 56 666 37 57 879 38 58 1,086 39 59 992 40 60 1,122 962 829 862 793 1,039 1,009 979 976 856 1,036 Demand 959 703 823 862 966 1,042 889 1,002 763 932 1,052 1,062 989 1,029 823 942 986 736 1,009 852 TABLE 9.4 EXAMPLE SIMULATION Day Beginning inventory position Number ordered Daily demand Day-ending inventory Ordering costs ($200 per order) Holding costs ($0.05 per piece per day) Shortage costs ($2 per piece) Total cost for day Cumulative cost from last day Cumulative costs to date 1 1,700 1,500 869 831 200 41.55 0 241.55 0.00 241.55 2 831 902 -71 0.00 142 142.00 241.55 383.55 3 1,500 3,000 1,109 391 200 19.55 391 1,200 947 -556 200 0.00 0 5 3,000 968 2,032 6 3,232 917 2,315 101.60 115.75 1,112 0 0 219.55 1,312.00 101.60 115.75 383.55 603.10 1,915.10 2,016.70 603.10 1,915.10 2,016.70 2,132.45 7 2,315 1,900 1,069 1,246 200 62.30 0 262.30 2,132.45 2,394.75 8 9 10
Expert Answer:
Related Book For
Auditing A Risk Based Approach to Conducting a Quality Audit
ISBN: 978-1305080577
10th edition
Authors: Karla Johnstone, Audrey Gramling, Larry E. Rittenberg
Posted Date:
Students also viewed these general management questions
-
"internet radios" for streaming audio, and personal video recorders and players. Describe design and evaluation processes that could be used by a start-up company to improve the usability of such...
-
Consider the following reaction: 2 NO(g) 2 N(g) + O(g) part A: Express the rate of the reaction in terms of the change in concentration of each of the reactants and products. Part B: In the first...
-
Amir made taxable gifts as follows: $800,000 in 1975, $1.2 million in 1999, and $600,000 in 2014. Calculate Amir's gift tax liability for 2014?
-
The May transactions of Chulak Corporation were as follows. May 4 Paid $700 due for supplies previously purchased on account. 7 Performed advisory services on account for $6,800. 8 Purchased supplies...
-
What performance measure would you consider most important for McDonald's? For Chevrolet?
-
Jack Shellenkamp owns and manages a computer repair service, which had the following trial balance on December 31, 2009 (the end of its fiscal year). Summarized transactions for January 2010 were as...
-
Netflix estimates that North American demand for its streaming service has an elasticity of approximately -1.5. In 2022, 74 million subscribers generated revenues of just over $14 billion at an...
-
Raintree Corporation maintains its records on a cash basis. At the end of each year the company's accountant obtains the necessary information to prepare accrual basis financial statements. The...
-
Describe how World War I affected two of the four cities. Describe how World War II affected the other two of the four cities The cities are New Orleans, Paris, Soweto, Shanghai
-
In general terms, describe the Market for EV Battery- This is the General Market in which the product would be sold and existing products, and sales trend in the past five years.
-
A. Explain how height-by-age can be used to assess quality of life. (10 marks) B. What difficulties result from using height-by-age as an indicator of quality of life? (20 marks) This question is...
-
What has happened to the unemployment rate in the u.s 2008 through 2002? To what would you attribute?how would this information be reflected on our production possibilities curve?
-
Citizens United v. Federal Election Commission (2010) -What are your general reactions to and critique of the Court's opinion? .Are there any aspects of the ruling that you especially agree or...
-
The following constant coefficient difference equation characterizes an LTI system y[n 1] = 0.4y[n - 2] -0.2x[n] + 0.5x[n 1] +0.4x[n - 2] a) Comment on the stability and causality of the system? b)...
-
At 31 December 20X9, the end of the annual reporting period, the accounts of Huron Company showed the following: a. Sales revenue for 20X9, $ 2,950,000, of which one- quarter was on credit. b....
-
Refer to the Standards Appendix at the end of this text. Identify the relevant auditing standards (PCAOB, AICPA, and IAASB) relating to external confirmations. Locate the standards on each...
-
Companies can improve internal control effectiveness by implementing effective ongoing monitoring of their internal control processes. Identify ongoing monitoring procedures that an organization...
-
Refer to the Focus on Fraud feature "The Importance of Internal Control for Safeguarding Assets at Chesapeake Petroleum and Supply, Inc." whichdescribes the embezzlement at Chesapeake Petroleum and...
-
What ethical issues might arise during the fact-finding process, and how should they be handled?
-
Why are conventional files easy to design and implement?
-
Determine the business's or organization's requirements through interviews, forms, surveys, JAD, and the like, and create the appropriate models and studies for the Web site. Don't forget to consider...
Study smarter with the SolutionInn App