Explain matching supply with demand, Operation Management

Assignment Help:

From "Matching Supply with Demand" Cachon/Terwiesch

(Inventory Cost) A manufacturing company producing medical devices reported $60,000,000 in sales over the last year. At the end of the same year, the company had $20,000,000 worth of inventory of ready-to-ship devices.

a. Assuming the units in inventory are valued (based on COGS) at $1000 per unit and are sold for $2000 per unit, how fast does the company turn it's inventory? The company uses a 25 percent per year cost of inventory. That is, for the hypothetical case that one unit of $1000 would sit exactly one year in inventory, the company charges its operations division a $250 inventory cost.

b. What - in absolute terms- is the per unit inventory cost for a product that costs $1000?


Related Discussions:- Explain matching supply with demand

Explain spread harmful rumours gossips uses bad language, Sara spread harmf...

Sara spread harmful rumours gossips uses bad language and lack civility in relationship while at work/ in which of the following is sarah engaging in/1.proert deviance/ 2 productio

Explain what does just in time manufacturing mean, What does Just in Time M...

What does Just in Time Manufacturing mean and how does it relate to manufacturing operations?

Need help for assignment, Prob: The 21st Century Studios is about to begin ...

Prob: The 21st Century Studios is about to begin the production of its most important (and most expensive) movie of the year accepted#

Briefly analyze two opportunities, Thoroughly research and analyze two oppo...

Thoroughly research and analyze two opportunities and two major threats that united airlines is facing

Explain direct marketing association website, On the Direct Marketing Assoc...

On the Direct Marketing Association website, what is interesting, how can companies use the website, what information is surprising and why?

Explain matrix structure and provide examples, Some people argue that the m...

Some people argue that the matrix structure should be adopted only as a last resort because dual chains of command can create more problems that they solve. Discuss and provide exa

Explain mental and physical skills, When selecting members for a team, cert...

When selecting members for a team, certain skills are very important. These skills are best described as: a. Technical skills and interpersonal skills b. Analytical and intuitive s

Explain what is the economic order quantity technique, What is the Economic...

What is the Economic Order Quantity technique and what are the basic assumptions the model formula follows?

Explain king henrys impact on the rule of law, Answer the following questio...

Answer the following questions on the Topic of The History of the American Corporation 1. Describe what is the rule of law and its importance on a successful capitalistic socie

Write Your Message!

Captcha
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