Elyssa’s Elegant Eveningwear (EEE) needs to ship finished goods from its manufacturing facility to its distribution warehouse. Annual demand for EEE is 2474 gowns. EEE can ship the gowns via regular parcel service (3 days transit time). Calculate the average annual transportation inventory for the parcel service. (Use 365 days per year)

QUESTION 2

Joe, the owner of Genuine Reproductions (GR), a company that manufactures reproduction furniture, is interested in measuring inventory effectiveness. Last year the cost of goods sold at GR was $2912590. The average inventory in dollars was $236528.

Calculate the inventory turnover for GR.

QUESTION 3

Joe, the owner of Genuine Reproductions (GR), a company that manufactures reproduction furniture, is interested in measuring inventory effectiveness. Last year the cost of goods sold at GR was $2755202. The average inventory in dollars was $391655.

Calculate the weeks of supply for GR. Assume 52 weeks per year.

QUESTION 4

Custom Computers, Inc. assembles custom home computer systems. The heat sinks needed are bought for 13 each and are ordered in quantities of 1032 units. Annual demand is 6002 heat sinks, the annual inventory holding cost rate is $3 per unit, and the cost to place an order is estimated to be $40. Calculate the number of orders place per year.

QUESTION 5

Custom Computers, Inc. assembles custom home computer systems. The heat sinks needed are bought for 11 each and are ordered in quantities of 1222 units. Annual demand is 6515 heat sinks, the annual inventory holding cost rate is $2 per unit, and the cost to place an order is estimated to be $48. Calculate the average inventory level.

QUESTION 6

Custom Computers, Inc. assembles custom home computer systems. The heat sinks needed are bought for 14 each and are ordered in quantities of 1380 units. Annual demand is 6230 heat sinks, the annual inventory holding cost rate is $3 per unit, and the cost to place an order is estimated to be $43. Calculate the total annual inventory holding cost plus annual ordering cost.

QUESTION 7

Sam’s Auto Shop services and repairs a particular brand of foreign automobile. Sam uses oil filters throughout the year. The shop operates 52 weeks per year, and weekly demand is 150 filters Sam estimates that it costs $16 to place an order and his annual holding cost rate is $2 per oil filter. Using this information, calculate the economic order quantity.