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    Use The Following Information For The Next Two Questions.: Act1108 Financial Management Inventory Management - Exercises

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    Maryrose Sumulong
    This document contains information about inventory management exercises for various companies: 1. Nytac Farm uses 12,600 baskets per year and the optimum order quantity is 2,750 baskets with an order cost of $600 and carrying cost of $2 per basket per period. 2. Bea's Farm uses 35 baskets per day and should order 280 baskets with a safety stock of 3 days and lead time of 5 days to receive an order. 3. Casey Company manufactures office fixtures and estimates total carrying costs of $6,250 for the year if maintaining 4 equal production runs without safety stock for their 5,000 unit annual demand.

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    Use The Following Information For The Next Two Questions.: Act1108 Financial Management Inventory Management - Exercises

    Uploaded by

    Maryrose Sumulong
    520 views1 page
    This document contains information about inventory management exercises for various companies: 1. Nytac Farm uses 12,600 baskets per year and the optimum order quantity is 2,750 baskets with an order cost of $600 and carrying cost of $2 per basket per period. 2. Bea's Farm uses 35 baskets per day and should order 280 baskets with a safety stock of 3 days and lead time of 5 days to receive an order. 3. Casey Company manufactures office fixtures and estimates total carrying costs of $6,250 for the year if maintaining 4 equal production runs without safety stock for their 5,000 unit annual demand.

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    EOQ Practice!

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    This document contains information about inventory management exercises for various companies: 1. Nytac Farm uses 12,600 baskets per year and the optimum order quantity is 2,750 baskets with an order cost of $600 and carrying cost of $2 per basket per period. 2. Bea's Farm uses 35 baskets per day and should order 280 baskets with a safety stock of 3 days and lead time of 5 days to receive an order. 3. Casey Company manufactures office fixtures and estimates total carrying costs of $6,250 for the year if maintaining 4 equal production runs without safety stock for their 5,000 unit annual demand.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    520 views1 page

    Use The Following Information For The Next Two Questions.: Act1108 Financial Management Inventory Management - Exercises

    Uploaded by

    Maryrose Sumulong
    This document contains information about inventory management exercises for various companies: 1. Nytac Farm uses 12,600 baskets per year and the optimum order quantity is 2,750 baskets with an order cost of $600 and carrying cost of $2 per basket per period. 2. Bea's Farm uses 35 baskets per day and should order 280 baskets with a safety stock of 3 days and lead time of 5 days to receive an order. 3. Casey Company manufactures office fixtures and estimates total carrying costs of $6,250 for the year if maintaining 4 equal production runs without safety stock for their 5,000 unit annual demand.

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    ACT1108 FINANCIAL MANAGEMENT

    Inventory Management - Exercises

    1. Nytac Farm uses 12,600 baskets a year for apple shipment. Determine the optimum order quantity of
    baskets assuming the order costs per order is $600 and it costs $2 to carry a unit of basket in inventory
    per period. 2,750 units

    2. Bea’s Farm uses 35 baskets each day to pack apples for shipping. It takes 5 days to receive a shipment of
    baskets after an order is placed and she would like a safety stock of 3 days in inventory. At what level of
    inventory should Bea's place an order for baskets? 280 units

    Use the following information for the next two questions.

    Casey Company manufactures a line of deluxe office fixtures. The annual demand for its miniature oak file is
    estimated to be 5,000 units. The annual cost of carrying one unit in inventory is P10, and the cost to initiate a
    production run is P1,000. There are no miniature oak files on hand, and Casey has scheduled four equal
    production runs of the miniature oak file for the coming year, the first of which is to be run immediately. Casey
    has 250 business days per year. Assume that sales occur uniformly throughout the year and that production is
    instantaneous.

    3. If Casey does not maintain a safety stock, the estimated total carrying costs for the office fixtures for the
    coming year based on their current schedule is P6,250

    4. The number of production runs per year of the miniature oak files that would minimize the sum of carrying
    costs and setup costs for the coming year is 5

    5. The Van Company uses 150,000 gallons of acid per month. The cost of carrying the chemical in inventory is
    P30 per gallon per year, and the cost of ordering the chemical is P7,500 per order. The firm uses the chemical
    at a constant rate throughout the year. It takes 21 days to receive an order once it is placed. The reorder
    point is 105,000 gallons

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