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Purchasing Work Problems

Question # 1: The NC Restaurant uses the Perpetual Inventory method for its non-perishable foods. Given the following information, determine the re-order point and the re-order quantity for each of the following items. Add 50% to the amount you calculate as the amount needed until delivery as a safety factor when determining the reorder point.

Canned Tomato Juice

Normal Usage, 2 cans per day

Time to get delivery, 5 days

Par stock, 24

Number of cans to a case, 6

Canned Peaches

Normal Usage, 3 cans per day

Time to get delivery, 4 days

Par stock, 36

Number of cans to a case, 12

Canned Black Olives

Normal Usage, 1 can per day

Time to get delivery, 5 days

Par stock, 12

Number of cans to a case, 12

Question # 2

Assume that the NC Restaurant changes its ordering system from a perpetual system to a periodic system, ordering non-perishables every two weeks. Given the following amounts of each found on the shelf, determine the amounts to order for each of the items in Question # 1. Add 50 % to the amounts calculated as a safety factor.

Canned Tomato Juice, 10 cans

Canned Peaches, 9 cans

Canned Black Olives, 6 cans

Question \# 1: The NC Restaurant uses the Perpetual Inventory method for its non-perishable foods. Given the following information, determine the re-order point and the re-order quantity for each of the following items. Add 50\% to the amount you calculate as the amount needed until delivery as a safety factor when determining the reorder point. Canned Tomato Juice Normal Usage, 2 cans per day Time to get delivery, 5 days Par stock, 24 Number of cans to a case, 6 Canned Peaches Normal Usage, 3 cans per day Time to get delivery, 4 days Par stock, 36 Number of cans to a case, 12 Canned Black Olives Normal Usage, 1 can per day Time to get delivery, 5 days Par stock, 12 Number of cans to a case, 12 Question \# 2 Assume that the NC Restaurant changes its ordering system from a perpetual system to a periodic system, ordering non-perishables every two weeks. Given the following amounts of each found on the shelf, determine the amounts to order for each of the items in Question \# 1. Add 50% to the amounts calculated as a safety factor. Canned Tomato Juice, 10 cans Canned Peaches, 9 cans Canned Black Olives, 6 cans