1)Calculate GMROI and inventory turnover given annual sales of $20,000, average inventory (at cost) of $4,000 and a gross margin of 45%. (1point)

2)Using the following information, calculate additions to stock: (1 point)

Sales	$26,000
EOM stock	$100,000
BOM stock	$88,000

3)Using the following information, calculate the average BOM stock-to-sales ratio for a six-month merchandise budget plan: ( 2 points).

GMROI 130%

Gross Margin 46%

4)Today is July 19. Buyers at two different stores are attempting to assess current open-to-buy given the following information:

Store A: Actual BOM stock	$50,000
Monthly additions actual	$25,000
Merchandise on order to be delivered	$10,000
Planned monthly sales Planned reductions	$30,000 $5,000
Planned EOM stock	$65,000

Store B: Actual BOM stock	$75,000
Monthly additions actual	$30,000
Merchandise on order to be delivered	$12,000
Planned monthly sales Planned reductions	$40,000 $6,000
Planned EOM stock	$75,000

What is the open-to-buy on July 19? What does this number mean to you for each store? (2 points).

5)What is the order point and how many units should be reordered if a food retailer has an item with a 7-day lead-time, 10-day review time, and daily demand of 8 units? Say 70 units are on hand and the retailer must maintain a backup stock of 20 units to maintain a 98 percent service level? (1 point).

6)A retailer is expecting a good month and is adjusting the sales forecast upward by $750. Using the following information, calculate the March open-to-buy: ( 1 point).

Planned purchases (March)	$32,000
Monthly additions actual	21,000
Merchandise on order (March)	8,000
Open-to-buy unused (February)	2,000

7)The Sports Shop has beginning inventory of $12,000 and planned ending inventory of $13,400. Planned sales for the period are $5,800. Calculate the open-to-buy for the month. (1 pont).

8)What is the reorder point, and how many units should be reordered if a retailer has an item that has a lead time of 10 days, a review time of 15 days, daily demand of 18 units, and there are 82 units on hand and the retailer must maintain a backup stock of 27 units to maintain a 95% service level? (1 point).