What he needed to do to meet his inventory reduction goal

Assignment Help Operation Management
Reference no: EM131034502

The details for part number 64-1909 as a basis to determine what he needed to do to meet his inventory reduction goal. Last year part number 64-1909 used 10,752 units at an average cost per unit of $112. The cost to place an order was $48 regardless of the quantity ordered and the SMC cost to carry inventory was 32%

Questions:

1. What would the cost to place an order need to be for Davis to meet his inventory reduction objective if Vice President of Sales Steve achieves his goal to increase sales by 9.6%

2. What would the cost to place an order need to be for Davis to meet his inventory reduction objective if Vice President of Sales Steve achieves his goal to increase sales by 9.6% and Financial Comptroller Fred achieves his goal of reducing the cost to carry inventory from 32.0% to 29.4%

3. What would the cost to place an order need to be for Davis to meet his inventory reduction objective if Vice President of Sales Steve achieves his goal to increase sales by 9.6% and Financial Comptroller Fred achieves his goal of reducing the cost to carry inventory from 32.0% to 29.4% and Purchasing Director Peter achieves his goal of reducing the average cost per unit by 5.2%

4. What would the cost to place an order need to be if Davis implemented a just in time approach so ordering 1 unit at a time is the optimal ordering quantity? Use the original variables for part number 64-1909. Your answer must be accurate to six decimal places

5. Provide three viable recommendations which would result in a lower cost to place an order. Keep in mind that providing a “viable recommendation” means you must move beyond theoretical statements and be immediately actionable. Do not skimp on your details (but don’t make anything up either) you must indicate how to lower the cost.

Reference no: EM131034502

Overall strategy controllable variables

Traditional Department Store A traditional department store chain is facing greater competition from full-line discount stores, specialty stores, and Web-based retailers. Over

Many regulations affect how health care is delivered

Many regulations affect how health care is delivered. At times the laws are aimed at protecting individual rights, while at other times they apply to protecting the public hea

Total current manufacturing costs

Mura Company has beginning work in process inventory of $72,000 and total current manufacturing costs of $318,000. If cost of goods manufactured is $320,000, what is the cost

Attending high end business meeting or important interview

When you think about attending a high end business meeting or an important interview, do ever wish you could wear a luxury accessory like all the other executives? What is the

Increasingly unpredictable-volatile environmental context

According to Judge (2012) OCC can be conceptualized as the overall capability of an organization to either effectively prepare for or respond to an increasingly unpredictable

What are two severe and pervasive types of sexual harassment

What are the two severe and pervasive types of Sexual Harassment? What laws prevent Sexual Harassment in the workplace? Why are Sexual Harassment laws necessary? What should a

Calculate the economic order quantity

How does the Kanban process focus on the individual within the teamwork concept and How is the Kanban process linked to the Kaizen process and What is capacity planning

Number of levels between upper management and labor

Let's talk about the number of levels between upper management and labor. In your experience, how do a flat organization (one with only a few levels of difference between uppe

Reviews

Write a Review

 
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd