Calculate the average inventory given the following information:Revenues $685,000ending inventory $250,000beginning inventory $450,000$350,000$295,000$425,000$300,000

Inventory is the raw materials and finished products that company used for manufacturing and…

Answered: Calculate the average inventory given…

Marketing

20th Edition

ISBN:9780357033791

Author:Pride, William M

Publisher:Pride, William M

Chapter19: Pricing Concepts

Section: Chapter Questions

Problem 6DRQ

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Scenario 3 Ben Gibson, the purchasing manager at Coastal Products, was reviewing purchasing expenditures for packaging materials with Jeff Joyner. Ben was particularly disturbed about the amount spent on corrugated boxes purchased from Southeastern Corrugated. Ben said, I dont like the salesman from that company. He comes around here acting like he owns the place. He loves to tell us about his fancy car, house, and vacations. It seems to me he must be making too much money off of us! Jeff responded that he heard Southeastern Corrugated was going to ask for a price increase to cover the rising costs of raw material paper stock. Jeff further stated that Southeastern would probably ask for more than what was justified simply from rising paper stock costs. After the meeting, Ben decided he had heard enough. After all, he prided himself on being a results-oriented manager. There was no way he was going to allow that salesman to keep taking advantage of Coastal Products. Ben called Jeff and told him it was time to rebid the corrugated contract before Southeastern came in with a price increase request. Who did Jeff know that might be interested in the business? Jeff replied he had several companies in mind to include in the bidding process. These companies would surely come in at a lower price, partly because they used lower-grade boxes that would probably work well enough in Coastal Products process. Jeff also explained that these suppliers were not serious contenders for the business. Their purpose was to create competition with the bids. Ben told Jeff to make sure that Southeastern was well aware that these new suppliers were bidding on the contract. He also said to make sure the suppliers knew that price was going to be the determining factor in this quote, because he considered corrugated boxes to be a standard industry item. Is Ben Gibson acting legally? Is he acting ethically? Why or why not?
Scenario 3 Ben Gibson, the purchasing manager at Coastal Products, was reviewing purchasing expenditures for packaging materials with Jeff Joyner. Ben was particularly disturbed about the amount spent on corrugated boxes purchased from Southeastern Corrugated. Ben said, I dont like the salesman from that company. He comes around here acting like he owns the place. He loves to tell us about his fancy car, house, and vacations. It seems to me he must be making too much money off of us! Jeff responded that he heard Southeastern Corrugated was going to ask for a price increase to cover the rising costs of raw material paper stock. Jeff further stated that Southeastern would probably ask for more than what was justified simply from rising paper stock costs. After the meeting, Ben decided he had heard enough. After all, he prided himself on being a results-oriented manager. There was no way he was going to allow that salesman to keep taking advantage of Coastal Products. Ben called Jeff and told him it was time to rebid the corrugated contract before Southeastern came in with a price increase request. Who did Jeff know that might be interested in the business? Jeff replied he had several companies in mind to include in the bidding process. These companies would surely come in at a lower price, partly because they used lower-grade boxes that would probably work well enough in Coastal Products process. Jeff also explained that these suppliers were not serious contenders for the business. Their purpose was to create competition with the bids. Ben told Jeff to make sure that Southeastern was well aware that these new suppliers were bidding on the contract. He also said to make sure the suppliers knew that price was going to be the determining factor in this quote, because he considered corrugated boxes to be a standard industry item. As the Marketing Manager for Southeastern Corrugated, what would you do upon receiving the request for quotation from Coastal Products?
Explain the following in respect of the Inventory: a) Characteristics b) Need
ABC Company had the following inventory information: Beginning inventory: 500 units at $10 per unit Purchases: 1,000 units at $12 per unit Sales: 800 units Ending inventory: 700 units Calculate the cost of goods sold for ABC Company.
If Super Toy Mart had made a perfect forecast of demand over the past 12 months and had decided to order 1/12 of that annual demand each month, what would its bullwhip measure have been?
Subject: Logistic management Q): Calculate ROI if profit margin is 12% and Asset turn over ratio is 1.4? Q): calculate ReOrder Point if lead time is 9 days and daily usage is 20 tons?
Supply/Demand Info Predicted Sales Regular production Overtime production Subcontract production Ending inventory Hired employees Fired employees Total employees Cost variables are as follows: Cost Variables Labor cost/hour Overtime cost/ton Subcontracting costiton Holding cost ton/month Hiring cost employee Firing cost/employee Beginning Apr May 4,200 531 $20 $32 $25 $10 $3.700 $4.000 Jun 51,500 50.300 61,600 Here is some additional relevant (capacity) information: Capacity Information Total labor hours/ton Regular production tons/employee/month Max regular production (tons/month) Max overtime production (tons/month) Max subcontractor production (tons/month) 3 100 56,700 3,700 6,000 Jul Aug Sep 45,400 56.600 62,800 Given the above information (and don't overlook beginning number of employees and inventory levels in the first table), create a LEVEL production plan with only the use of regular production and no inventory left over at the end of the six-month period. What is the regular…
Dara Jones, operations manager of Arrow Distributing Corp., likes to track inventory by using weeks of supply as well as by inventory turnover. Arrow Distributing Corp. Net Revenue $16,680 Cost of sales $13,980 Inventory $1,020 Total assets $8,360 a) What is its weeks of supply? decimal places). weeks (round your response to two b) What percentage of Arrow's assets are committed to inventory? response as a percentage rounded to two decimal places). c) What is Arrow's inventory turnover? decimal places). % (enter your times per year (round your response to two d) Suppose a manufacturer has an inventory turnover of 13.5 times per year. Arrow's supply chain performance relative to the manufacturer's, as measured by inventory turnover, is better worse the same
Over the past 12 months, Super Toy Mart hasexperienced a demand variance of 10,000 units and has produced an order variance of 12,000 units.a) What is the bullwhip measure for Super Toy Mart?b) If Super Toy Mart had made a perfect forecast of demandover the past 12 months and had decided to order 1/12 ofthat annual demand each month, what would its bullwhipmeasure have been?
Demand for stereo headphones and MP3 players for joggers has caused Nina Industries to grow almost 50 percent over the past year. The number of joggers continues to expand, so Nina expects demand for headsets to also expand, because, as yet, no safety laws have been passed to prevent joggers from wearing them. Demand for the players for last year was as follows: MONTH DEMAND (UNITS) January 4,240 February 4,340 March 4,040 April 4,440 May 5,040 June 4,740 July 5,340 August 4,940 September 5,440 October 5,740 November 6,335 December 6,030 a. Using linear regression analysis, what would you estimate demand to be for each month next year? (Do not round intermediate calculations. Round your answers to 2 decimal places.) b. To be reasonably confident of meeting demand, Nina decides to use 4 standard errors of estimate for safety. How many additional units should be held to meet this level of confidence? (Do not round intermediate calculations. Round…
As an operations management consultant, you have been asked to evaluate a furniture manufacturer’s cash-to-cash conversion cycle under the following assumptions: sales of $26.4 million, cost of goods sold of $21.1 million, 50 operating weeks a year, total average on hand inventory of $2,350,000, accounts receivable equal to $2,435,000, and accounts payable of $3,695,000. What is the cash-to-cash conversion cycle in weeks? Do not round intermediate calculations. Round your answer to one decimal place. week(s) What recommendations can you make to improve performance? inventory weeks of supply and accounts receivable weeks of supply or accounts payable weeks of supply are ways to improve overall firm performance.
Demand for stereo headphones and MP3 players for joggers has caused Nina Industries to grow almost 50 percent over the past year. The number of joggers continues to expand, so Nina expects demand for headsets to also expand, because yet, no safety laws have been passed to prevent joggers from wearing them. Demand for the players for last year was as follows: MONTH DEMAND (UNITS) January 4,220 February 4,320 March 4,020 April 4,420 May 5,020 June 4,720 July 5,320 August 4,920 September 5,420 October 5,720 November 6,320 December 6,020 Using linear regression analysis, what would you estimate demand to be for each month next year? (Round two decimal places) To be reasonably confident of meeting demand, Nina decides to use 3 standard errors of estimate for safety. How many additional units…

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Calculate the average inventory given the following information: Revenues $685,000 ending inventory $250,000 beginning inventory $450,000 $350,000 $295,000 $425,000 $300,000