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Colete Trucks, Inc., a builder of high quality road cement has about 5,000 items in its inventory. They hire Kevin, IE intern for the summer assign as inventory clerk. The firm determined that it has 500 A items, 1750 B items, and 2,750 C items. Company policy is to count all A items every month (every 20 working days), all B items every quarter (every 60 working days), and all C items every 6 months (every 120 working days). Kevin has been counting 80 items for each day. Is his daily inventory count accurate? Why or Why not? If not, how many should be its stocktaking?

Colete Trucks, Inc., a builder of high quality road cement has about 5,000 items in its inventory. They hire Kevin, IE intern for the summer assign as inventory clerk. The firm determined that it has 500 A items, 1750 B items, and 2,750 C items. Company policy is to count all A items every month (every 20 working days), all B items every quarter (every 60 working days), and all C items every 6 months (every 120 working days). Kevin has been counting 80 items for each day. Is his daily inventory count accurate? Why or Why not? If not, how many should be its stocktaking?

Practical Management Science
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
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Colete Trucks, Inc., a builder of high quality road cement has about 5,000 items in its inventory. They hire Kevin, IE intern for the summer assign as inventory clerk. The firm determined that it has 500 A items, 1750 B items, and 2,750 C items. Company policy is to count all A items every month (every 20 working days), all B items every quarter (every 60 working days), and all C items every 6 months (every 120 working days). Kevin has been counting 80 items for each day. Is his daily inventory count accurate? Why or Why not? If not, how many should be its stocktaking? *

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