Find the reorder point for ordering shirts

Assignment Help Corporate Finance
Reference no: EM1315857

Evaluation of Re-order level of books Inventory of college.

The bookstore at Smith College purchases sport shirts with the college logo to sell from a local vendor.   The vendor sells the sport shirts to the college for $38 each.  The cost to the bookstore for placing each order is $120.  The carrying cost is $5.20 per shirt per year.   The bookstore estimates that 1700 sport shirts will be sold over the next year and does not want any shortages.  The bookstore sells the shirt for $50 each. There are 260 business days a year for the bookstore.   Lead time for filling an order once placed is 2 weeks.   The vendor has offered the College Bookstore the following discounts:

Order Size

Discount

% of Order

Cost of Shirts from Vendor

1-299

0% discount

$38

300-499

2% discount

$37.24

500-799

4% discount

$36.48

800+

6% discount

$35.72

If the time to fill an order is 10 business days, what is the Reorder Point for ordering shirts?

Reference no: EM1315857

Questions Cloud

What order size should smith college acquire from vendor : Evaluation of EOQ Decisions of college on vendor's order - What order size should Smith College acquire from the vendor? Explain Why?
Augmented matrices to solve the equations : Augmented matrices to solve the equations
Augmented matrices to solve the word problem : Augmented matrices to solve the word problem
Computation of economic order quantity : Computation of Economic Order quantity of Books for college and What is their expected total inventory cost (excluding the unit cost of the shirts)?
Find the reorder point for ordering shirts : Evaluation of Re-order level of books Inventory of college - If the time to fill an order is 10 business days, what is the Reorder Point for ordering shirts?
Inventory with shortage of stock allowance : Evaluation of EOQ - Inventory with shortage of stock allowance Should the bookstore allow shortages? Explain the basis for your answer.
Free or unused capacity of freezer of ice cream : Inventory Decisions - Free or unused capacity of freezer of ice cream How much unused freezer space (in gallons) is leftover from part "a"?
Computation of linear programming technique : Computation of ice cream to be manufactured using the linear programming technique - Determine the amount of ice cream and yogurt the shop should make each week. Explain why this quantity should be made.
The form of augmented matrices : The form of augmented matrices.

Reviews

Write a Review

Corporate Finance Questions & Answers

  Impact of the global economic crisis on business environment

This paper reviews the article of ‘the impact of the global economic crisis on the business environment' that is written by Roman & Sargu (2011).

  Explain the short and the long-run effects on real output

Explain the short and the long-run effects on real output, price, and unemployment

  Examine the requirements for measuring assets

Examine the needs for measuring assets at fair value in accounting standards

  Financial analysis report driven by rigorous ratio analysis

Financial analysis report driven by rigorous ratio analysis

  Calculate the value of the merged company

Calculate the value of the merged company, the gains (losses) to each group of shareholders, NPV of the deal under different payment methods. Synergy remains the same regardless of payment method.

  Stock market project

Select five companies for the purpose of tracking the stock market, preparing research on the companies, and preparing company reports.

  Write paper on financial analysis and business analysis

Write paper on financial analysis and business analysis

  Intermediate finance

Presence of the taxes increase or decrease the value of the firm

  Average price-earnings ratio

What is the value per share of the company's stock

  Determine the financial consequences

Show by calculation the net present value for the three alternatives (no education, network design certification, mba). Also, according to NPV suggest which alternative you advise your friend to choose

  Prepare a spread sheet model

Prepare a spread sheet model for the client that determines NPV/IRR with and without tax.

  Principles and tools for financial decision-making

Principles and tools for financial decision-making. Analyse the concept of corporate capital structure and compute cost of capital.

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