Question: please answer this question The attached Lego Inventory Worksheet has a list of all Lego kits in our inventory of toys. The Annual Cost of
please answer this question
The attached Lego Inventory Worksheet has a list of all Lego kits in our inventory of toys. The Annual Cost of Goods Sold is the amount in dollars sold for an entire year (365 days) for each item. You will need to compute the Daily Cost of Goods Sold for each item. The Inventory Level $ is the dollar value currently in inventory for each item. Compute the Days on Hand for each Lego kit. This is the number of days that we anticipate our inventory level will last before we need another delivery from the factory. Identify the kits with over 93 Days on Hand (over 3 months supply in inventory). Use conditional formatting and highlight in Green. We do not want to carry too much inventory Identify the kits with less than 2 Days on Hand (We will run out tomorrow). Use conditional formatting and highlight in Red We do not want to run out of items that customers are buying.
Executive Summary, identify the items we have too much of in stock and recommend what we should do with those kits. Also, identify which items we are about to run out of and what we should do in the future with those kits. Calculate what your suggestions would do to costs based on the following. If you increase and/or decrease inventory calculate the annual cost based on carrying cost of 25%. If you increase your average inventory by $100 your carrying cost would increase by $25 on this item. If you reduce your average inventory by $100 on an item you would reduce carrying cost by $25. Many other costs could be incurred due to lost customers, lost profit from lost sales etc but we do not have the information to include these costs in this problem
| Item | Annual Cost of Goods Sold | Daily COGS | Inventory Level $ | Days on Hand |
| Advent | $ 153,300 | $ 12,600 | ||
| Advent Sub-Set | $ 359,925 | $ 26,625 | ||
| Adventurers | $ 602,250 | $ 23,100 | ||
| Agents | $ 441,900 | $ 8,475 | ||
| Agori | $ 985,500 | $ 18,900 | ||
| Airjitzu | $ 810,975 | $ 71,100 | ||
| Airport | $ 702,600 | $ 34,650 | ||
| Airport 2 | $ 294,300 | $ 3,225 | ||
| Alien Conquest | $ 1,081,350 | $ 59,250 |
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