What is the projected finished goods inventory

Assignment Help Operation Management

Reference no: EM132241388

Given situation as of January 1:

Number of shifts per work day = 1

Scheduled production/8.5-hour shift = __________

cases of 24 cans

Rated speed of production line = 1200 cans per minute

Scheduled number of working days/month = 22

Beginning inventory on Jan 1 = 88,333 cases

Sales forecast for January = 600,000 cases

Sales forecast for February = 580,000 cases

Sales forecast for March = 500,000 cases

You must calculate the number and fill the blank above.

Using the information given above, answer these questions.

1. What is the projected finished goods inventory at end of March?

2. Will this schedule meet the forecasted demand for each of the 3 months? If not, which month(s) will be short and by how many cases?

3. If we experience 3.7% downtime every day, what will be the March ending inventory, in cases?

4. If each case has an average value of $7.936, what is the value of a 10% reduction in the March inventory calculated in #3, above?

Reference no: EM132241388

Questions Cloud

Who are the major competitors to nike : Who are the major competitors to Nike? How does Nike attempt to differentiate itself from the competition?

Define vertical integration : Define vertical integration. Why is vertical integration commonly used in the firm's core business?

Replace some of the man labor with automation : An automobile company wants to replace some of the man labor with automation. Students are expected to apply few models of change

Partial success in implementing project management : By 1997, Como had achieved partial success in implementing project management. Should Como compete to become a chunk manager?

What is the projected finished goods inventory : What is the projected finished goods inventory at end of March? what will be the March ending inventory, in cases?

Collect feedback from clients about their satisfaction : Create a written survey that could be used to collect feedback from clients about their satisfaction with the services in your chosen area.

Como had reputation for delivering quality product : Como Tool and Die was a second-tier component supplier to the auto industry. Como had a reputation for delivering a quality product.

Contribute to the formulation of organization-wide strategy : When can organization's functional areas Contribute to the formulation of organization-wide strategy?

Product in terms of demographic-behavioural characteristics : Describe a likely target market for this product in terms of its demographic and behavioural characteristics.

User Account

All Pages