1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Andreas93 [3]
3 years ago
15

Assuming a service level of 99% for all parts, what will be the impact on the total inventory investment if the number of wareho

uses is reduced from 8 warehouses to 2? Reduced to 1? Assume that each of the 8 warehouse has roughly equal demand and, when consolidating the warehouses, the total demand across all 8 warehouses is equally divided between the remaining warehouses.
A. Using data from the case, complete the table below. Note that Exhibit gives the standard deviation of the bi-weekly demand for 8, 2, and 1 warehouses respectively. Use these values to calculate the Stdev of weekly demand.
Product Griffin Beaker Erlenmeyer Flask
# of Warehouses 8 2 1 8 2 1
Z-Value 2.33 2.33 2.33 2.33 2.33 2.33
Calculations Average
for 1 warehouse Weekly
Demand
Stdev of
Weekly
Demand
POU (weeks)
Q
Average Pipeline
Inventory
Begin on hand
SS
Average On Hand
Average Inventory
Total Average Inventory
(all warehouses)
Calculate the percentage savings in total average Inventory investment from warehouse consolidation for each product. Assume lead time stays constant at 1 week:
from 8 warehouses to 2 warehouses.
from 8 warehouses to 1 warehouse.
Take a simple average of the percent savings for each part and apply the resulting average percent savings to the entire North American finished goods (NA FG) inventory. Assume 2010 NA FG is $5 million. Calculate the total savings for the NA FG if:
8 warehouses are consolidated to 2 warehouses.
8 warehouses are consolidated to 1 warehouse.
Would savings from consolidation compensate for the expected increase in inventory of $1.5 million if:
8 warehouses are consolidated to 2 warehouses?
8 warehouses are consolidated to 1 warehouse?
Griffin 500ml Beaker Erlenmeyer 500ml Flask
2009 units sold 11,268 3,389
Percent of all units sold 0.1% 0.03%
Annual carrying cost (%) 14% 14%
Unit price $8.80 $9.50
Unit cost $3.96 $4.56
Cost of underage $0.48 $0.49
Cost of overage $0.021 $0.025
Optimal service level 95.8% 95.3%
Average bi-weekly demand
(8 warehouses) 54.2 16.3
Standard deviation of bi-
weekly demand
(8 warehouses) 21.4 10.9
Average bi-weekly demand
(2 warehouses) 216.7 65.2
Standard deviation of bi-
weekly demand
(2 warehouses) 38.3 19.5
Average bi-weekly
demand (1 warehouse) 433.4 130.3
Standard deviation of bi-
weekly demand
(1 warehouse) 51.0 26.0
Business
1 answer:
nlexa [21]3 years ago
5 0

Answer:

thanks for poitns 10 points

You might be interested in
What interest is paid for three months on $960 at 2 74% annual interest paid quarterly?​
3241004551 [841]

Answer:

$6.64

Explanation:

The applicable formula

A = p x ( 1+ r)^ n

A =amount after 3 months

p=principal amount: $960

r = interest rate : 2.74% per year or 2.74/12 per month =0.23% or 0.0023

n = 3 month

A = $960 x ( 1+ 0.0023) ^3

A =$960 x (1.0023)^3

A =$960 x 1.00691

A=$966.64

compound interest Earned

=$966.64 - $960

=$6.64

6 0
3 years ago
The specific identification method of costing inventories is used when the
Zolol [24]

Answer:

Explanation: The specific identification method of costing inventories is used when finding out the cost of the ending inventory.

This method is used to identify when an item is bought and sold and what items are remaining in the store and how to allocate the cost price of item bought at a particular point in time. This is mainly useful when cal calculating the ending inventory.

5 0
4 years ago
Read 2 more answers
In a group setting, "recording secretary," "moderator," "initiator," and "information seeker" are examples of
kogti [31]

In a group setting, "recording secretary (taking the notes)," "moderator” (the facilitator of discussion)," "initiator" (the one who generates new concepts and offers the new solution) and "information seeker" are examples of Task roles. The Task roles are the one that is directly related to the successful achievement of <span>the task and goals of the group.</span>

4 0
4 years ago
Read 2 more answers
Anson Jackson Court Company (AJC) The Anson Jackson Court Company (AJC) currently has $200,000 market value (and book value) of
ddd [48]

Answer:

7.38%

Explanation:

Calculation to determine what would be AJC's new WACC and total value

Using this formula

WACC and total value=(Equity)(Required rate of return on equity)+(Debt)(1-Tax rate)(Required rate of return on debt)

Let plug in the formula

WACC and total value=(0.6)(0.095)+(0.4)(1-0.4)(0.07)

WACC and total value=0.057+0.0168

WACC and total value=0.0738*100

WACC and total value=7.38%

Therefore would be AJC's new WACC and total value is 7.38%

5 0
3 years ago
A manufacturer of handcrafted wine racks has determined that the cost to produce x units per month is given by upper c equals 0.
Fantom [35]

Answer:

The cost per month is increasing at a rate $365.

Explanation:

Differentiation Formula

  • \frac{d}{dx}(x^n)= nx^{n-1}  
  • \frac{d}{dx}(a)=0             [ where a is a constant]
  • \frac{d}{dx}(ax^n)=a \frac{d}{dx}(x^n)= anx^{n-1}

Given that,

A manufacturer of handcrafted wine racks has determined that the cost to produce x units per month is given by

c=0.2x^2+10,000.

Again given that,

the rate of changing production is 13 unit per month

i.e \frac{dx}{dt}=13

To find the cost per month, we need to find out the value \frac{dc}{dt} when production is changing at the rate 13 units per month and the production is 70 units.

c=0.2x^2+10,000

Differentiating with respect to t

\frac{d}{dt}(c)=\frac{d}{dt}(0.2x^2)+\frac{d}{dx}(10,000)

\Rightarrow \frac{dc}{dt}=0.2\frac{d}{dt}(x^2)+\frac{d}{dx}(10,000)

\Rightarrow \frac{dc}{dt}=0.2\times 2x^{2-1}\frac{dx}{dt}+0

\Rightarrow \frac{dc}{dt}=0.4x\frac{dx}{dt}

Plugging \frac{dx}{dt}=13

\Rightarrow \frac{dc}{dt}=0.4x\times 13

\Rightarrow \frac{dc}{dt}=5.2x

\frac{dc}{dt}|_{x=70}=5.2\times 70 [ plugging x=70]

            =364

[ The unit of c is not given. Assume that the unit of c is dollar.]

The cost per month is increasing at a rate $365.

4 0
3 years ago
Other questions:
  • __________ is the operations management planning function that searches for quality material resources, finds the best suppliers
    14·1 answer
  • What is your employer required to have on fixed ladders that extend more than 24 feet in the workplace?
    5·1 answer
  • You go to a local mechanic to get your tires changed. The tires cost $300. There is a 6% sales tax, but you get a 10% discount.
    15·2 answers
  • There are several bridges along highway 280 which are free to ride on. This bridge was built and is being maintained by the gove
    11·1 answer
  • At which step is a solution implemented in the decision-making process of solving a workplace problem?
    7·2 answers
  • When practicing skills you should focus on _____________?
    14·2 answers
  • Knowledge Check 01 Tune Store reports inventory using the lower of cost and net realizable value (NRV). Information related to i
    12·1 answer
  • Which method of evaluating capital investment proposals uses present value concepts to compute the rate of return from the net c
    6·1 answer
  • Young company is involved in a lawsuit. The liability which could arise as a result of this lawsuit should be recorded on the bo
    12·1 answer
  • If average annual income for all workers is $37,000 and a person with a bachelor’s degree can expect to earn 32 percent more tha
    14·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!