{"id":10086,"date":"2024-01-29T05:55:31","date_gmt":"2024-01-29T05:55:31","guid":{"rendered":"https:\/\/www.writemyessays.app\/blog\/questions\/operations-management-needs-to-understand-inventory-management-concepts-please-look-at-the-attachments-and-practice-problem-examples-before-completing-the-10-problems\/"},"modified":"2024-01-29T05:55:31","modified_gmt":"2024-01-29T05:55:31","slug":"operations-management-needs-to-understand-inventory-management-concepts-please-look-at-the-attachments-and-practice-problem-examples-before-completing-the-10-problems","status":"publish","type":"questions","link":"https:\/\/www.writemyessays.app\/blog\/questions\/operations-management-needs-to-understand-inventory-management-concepts-please-look-at-the-attachments-and-practice-problem-examples-before-completing-the-10-problems\/","title":{"rendered":"Operations Management * Needs to understand Inventory Management Concepts *Please look at the attachments and practice problem examples before completing the 10 problems."},"content":{"rendered":"

This assignment requires knowledge of inventory management concepts (Module 3).<\/span><\/p>\n

You can
\nrefer to the solved practice problems to see examples of solutions and of how
\nyou can show calculations and providing reasoning as part of your responses.<\/span><\/p>\n

\n

<\/p>\n

 <\/span><\/p>\n

 <\/span><\/p>\n

 <\/span><\/p>\n

 <\/span><\/p>\n<\/div>\n

Question
\n1      <\/span><\/span><\/b>6 pts<\/span><\/b><\/span><\/b><\/p>\n

 <\/span><\/b><\/p>\n

 <\/span><\/b><\/p>\n

The information in this paragraph applies to this question and
\nthe 5 questions that follow (so, questions 1-6).<\/span><\/b><\/span><\/p>\n

The daily demand for the
\nSavonera bar soap, one of the luxury brands manufactured by Mellow Cosmetics
\nCompany, is 146 soap bars.<\/span><\/b><\/span><\/p>\n

The cost of a single soap
\nbar is $2.50.<\/span><\/b><\/span><\/p>\n

The rate of holding cost
\nper unit per day, which includes opportunity cost of investment and
\ndeterioration of a soap bar when in storage, is 1% of the cost of the soap bar.<\/span><\/b><\/span><\/p>\n

The cost of setting up
\nmachinery for making a batch of the Savonera soap bar, which includes changing
\nthe materials and tools, and wastage of initial test quantities, is $46 per
\nsetup. Note that setting up cost is equivalent to the ordering cost.<\/span><\/b><\/span><\/p>\n

The company currently
\nuses an arbitrary batch size of 6,000 for making Savonera bars of soap. Based
\non this batch size and the information provided earlier, please calculate and
\nreport the daily inventory holding (carrying) cost for Mellow Cosmetics
\nCompany.<\/span><\/p>\n

Remember to show your
\nwork including any formula you use.<\/span><\/p>\n

Round your final answer
\nto two spaces (if needed) after the decimal.<\/span><\/p>\n

Bold
\nyour final answer.<\/span><\/p>\n

 <\/span><\/p>\n

 <\/span><\/b><\/p>\n

 <\/span><\/b><\/p>\n

Question
\n2   <\/span><\/span><\/b>6 pts<\/span><\/b><\/span><\/b><\/p>\n

 <\/span><\/p>\n

Based
\non the arbitrary batch size of 6,000 bars of Savonera soap and the information
\nprovided earlier, please calculate and report the total daily cost of setups
\n(ordering) for Mellow Cosmetics Company.<\/span><\/p>\n

Remember to show your
\nwork including any formula you use.<\/span><\/p>\n

Round your final answer
\nto two spaces (if needed) after the decimal.<\/span><\/p>\n

Bold
\nyour final answer.<\/span><\/p>\n

 <\/span><\/p>\n

 <\/span><\/p>\n

 <\/span><\/p>\n

 <\/span><\/p>\n

Question
\n3                       <\/span><\/span><\/b>6 pts<\/span><\/b><\/span><\/b><\/p>\n

 <\/span><\/p>\n

The
\nmanagement of Mellow Cosmetics Company has requested your help for
\nsystematically figuring out the batch size for Savonera soap to replace their
\narbitrary batch size. Based on the demand and costs information provided
\nearlier, please help by calculating and reporting the Economic Order Quantity
\n(EOQ) for the batch size that you would recommend for manufacturing Savonera
\nsoap bars.<\/span><\/p>\n

Remember to show your
\nwork including any formula you use.<\/span><\/p>\n

Round your final answer
\nto the nearest integer value.<\/span><\/p>\n

Bold
\nyour final answer.<\/span><\/p>\n

 <\/span><\/p>\n

 <\/span><\/b><\/p>\n

 <\/span><\/b><\/p>\n

 <\/span><\/b><\/p>\n

Question
\n4          <\/span><\/span><\/b>6 pts<\/span><\/b><\/span><\/b><\/p>\n

 <\/span><\/p>\n

Using
\nthe EOQ batch size that you calculated for Savonera bars of soap, please
\ncalculate and report the daily inventory holding (carrying) cost for Mellow
\nCosmetics Company.<\/span><\/p>\n

Remember to show your
\nwork including any formula you use.<\/span><\/p>\n

Round your final answer
\nto two spaces (if needed) after the decimal.<\/span><\/p>\n

Bold
\nyour final answer.<\/span><\/p>\n

 <\/span><\/p>\n

<\/a>Question 5   <\/span><\/span><\/b>6 pts<\/span><\/b><\/span><\/b><\/p>\n

 <\/span><\/p>\n

Using
\nthe EOQ batch size that you calculated for Savonera bars of soap, please
\ncalculate and report the total daily cost of setups (ordering) for Mellow
\nCosmetics Company.<\/span><\/p>\n

Remember to show your
\nwork including any formula you use.<\/span><\/p>\n

Round your final answer
\nto two spaces (if needed) after the decimal.<\/span><\/p>\n

Bold
\nyour final answer.<\/span><\/p>\n

 <\/span><\/p>\n

<\/a> <\/span><\/p>\n

Question
\n6   <\/span><\/span><\/b>6 pts<\/span><\/b><\/span><\/b><\/p>\n

 <\/span><\/p>\n

Compare
\nthe total daily cost of inventory management (holding + setup cost) for the two
\nquantities (6,000 and the EOQ you calculated), i.e., calculate and report the
\ndifference in the total daily costs of inventory management using the two
\ndifferent quantities.<\/span><\/p>\n

Bold your final answer
\nfor the difference amount.<\/span><\/p>\n

Based
\non your knowledge of the idea behind EOQ, please explain the reason for the
\ndifference (in words in two or three sentences \u2013 not in terms of reconciling
\nthe differences mathematically).<\/span><\/p>\n

 <\/span><\/p>\n

 <\/span><\/p>\n

Question
\n7        <\/span><\/span><\/b>6 pts<\/span><\/b><\/span><\/b><\/p>\n

 <\/span><\/b><\/p>\n

Please
\nread the information carefully to answer the question.<\/span><\/b><\/span><\/p>\n

Workshop manager Shinji
\nSuzuki has noted that the daily demand for the StoryKore bibimbap pots
\n(dolsots) produced and sold by his business, Pandamonium International
\nCookware, located in southwest Champaign, is fixed at 24 pots per day.<\/span><\/b><\/span><\/p>\n

The lead time for
\nproducing the pots is 4 days.<\/span><\/b><\/span><\/p>\n

Shinji Suzuki would like
\nyour help in figuring out the following about managing inventory.<\/span><\/b><\/span><\/p>\n

Based on the information
\nprovided, please calculate and report the reorder point.<\/span><\/p>\n

Remember to show your
\nwork including any formula you use.<\/span><\/p>\n

Round your final answer
\nto the nearest whole number.<\/span><\/p>\n

Bold
\nyour final answer.<\/span><\/p>\n

 <\/a><\/span><\/p>\n

Question
\n8   <\/span><\/span><\/b>6 pts<\/span><\/b><\/span><\/b><\/p>\n

 <\/span><\/p>\n

The
\nfollowing information is required for answering questions 8-10.<\/span><\/p>\n

Cold Stone, an ice cream
\nstore in central Illinois, sells several varieties of popular ice creams in its
\nneighborhood villages. The following data pertains to the year 2023.<\/span><\/b><\/span><\/p>\n

\u00b7       
\n<\/span><\/span><\/span>The annual sales revenue of the store is $4
\nmillion. The annual cost of all the goods sold is $3 million.<\/span><\/b><\/span><\/p>\n

\u00b7       
\n<\/span><\/span><\/span>The beginning inventory on January 01 is $0.5
\nmillion. The ending inventory on December 31 is $0.3 million.<\/span><\/b><\/span><\/p>\n

\u00b7       
\n<\/span><\/span><\/span>The beginning accounts receivables on January
\n01 is $0.2 million. The ending accounts receivables on December 31 is $0.1
\nmillion.<\/span><\/b><\/span><\/p>\n

\u00b7       
\n<\/span><\/span><\/span>The beginning accounts payables on January 01
\nis $0.3 million. The ending accounts payables on December 31 is $0 million.<\/span><\/b><\/span><\/p>\n

Compute the Days of
\nInventory carried by the store.<\/span><\/p>\n

Remember to show your
\nwork including any formula you use.<\/span><\/p>\n

Round your final answer to
\ntwo spaces (if needed) after the decimal.<\/span><\/p>\n

Bold
\nyour final answer.<\/span><\/p>\n

 <\/a><\/span><\/p>\n

Question
\n9    <\/span><\/span><\/b>6 pts<\/span><\/b><\/span><\/b><\/p>\n

 <\/span><\/b><\/p>\n

Refer to the information in Question 8.<\/span><\/b><\/span><\/p>\n

Compute the Days of
\nReceivables and the Days of Payables for the store. <\/span><\/p>\n

Remember to show your
\nwork including any formula you use.<\/span><\/p>\n

Round your final answer
\nto two spaces (if needed) after the decimal.<\/span><\/p>\n

Bold
\nyour final answer.<\/span><\/p>\n

 <\/span><\/p>\n

<\/a> <\/span><\/p>\n

Question
\n10   <\/span><\/span><\/b>6 pts<\/span><\/b><\/span><\/b><\/p>\n

 <\/span><\/p>\n

Compute
\nthe Cash-to-Cash cycle of Cold Stone.<\/span><\/span><\/p>\n

Remember to show your
\nwork including any formula you use.<\/span><\/p>\n

Round your final answer
\nto two spaces (if needed) after the decimal.<\/span><\/p>\n

Bold
\nyour final answer.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"

This assignment requires knowledge of inventory management concepts (Module 3). You can refer to the solved practice problems to see examples of solutions and of how you can show calculations and providing reasoning as part of your responses.         Question 1      6 pts     The information in this paragraph applies to this […]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"closed","template":"","meta":[],"disciplines":[9],"paper_types":[],"tagged":[],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/www.writemyessays.app\/blog\/wp-json\/wp\/v2\/questions\/10086"}],"collection":[{"href":"https:\/\/www.writemyessays.app\/blog\/wp-json\/wp\/v2\/questions"}],"about":[{"href":"https:\/\/www.writemyessays.app\/blog\/wp-json\/wp\/v2\/types\/questions"}],"author":[{"embeddable":true,"href":"https:\/\/www.writemyessays.app\/blog\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.writemyessays.app\/blog\/wp-json\/wp\/v2\/comments?post=10086"}],"version-history":[{"count":0,"href":"https:\/\/www.writemyessays.app\/blog\/wp-json\/wp\/v2\/questions\/10086\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.writemyessays.app\/blog\/wp-json\/wp\/v2\/media?parent=10086"}],"wp:term":[{"taxonomy":"disciplines","embeddable":true,"href":"https:\/\/www.writemyessays.app\/blog\/wp-json\/wp\/v2\/disciplines?post=10086"},{"taxonomy":"paper_types","embeddable":true,"href":"https:\/\/www.writemyessays.app\/blog\/wp-json\/wp\/v2\/paper_types?post=10086"},{"taxonomy":"tagged","embeddable":true,"href":"https:\/\/www.writemyessays.app\/blog\/wp-json\/wp\/v2\/tagged?post=10086"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}