Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

a) Why is inventory management important? How does mismanaged inventory leads to costs to any organisation? (10 marks) Give examples to justify your answers.

  

a) Why is inventory management important? How does mismanaged inventory leads to costs to any organisation? (10 marks) Give examples to justify your answers. (Please answer in 200-300 words). b) Reem owns a Carpet shop. She has beautiful carpets from across the world, however there is one model that is a favorite amongst her customers. The annual sales of this carpet is 500. The cost to place an order to replenish inventory is AED25 per order, and annual inventory holding cost per unit is AED20. (10marks) Assume that her store is open for 6 days a week. a. What is the optimal order size? b. What is the optimal number of orders per year? c. What is the optimal number of days between orders? d. What is the annual holding and setup cost?

Step by Step Solution

There are 3 Steps involved in it

Step: 1

Answer a Inventory management is crucial for any organization as it ensures that the right amount of inventory is available at the right time to meet ... blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Management Process

Authors: Lee Long

4th Edition

978-0201822939,0201822938

More Books

Students also viewed these Marketing questions

Question

Sales budget: Cash receipts budget: Purchases budget:

Answered: 1 week ago

Question

explain how achievement motivation develops, and

Answered: 1 week ago

Question

compare and contrast theories of achievement motivation,

Answered: 1 week ago

Question

describe what makes up personality and why it is important,

Answered: 1 week ago