Marketing Course

SUDO- EXERCISE TWELVE INVENTORY MANAGEMENT COMPLETE AND PLACE IN DROPBOX BY 6:00PM Date Team # Name Inventory Management 1. Turnover analysis Sales Costs Average Turnov er Inventory Rate $500,000$300,000$200,000 1.5 500,000300,000 150,000 2.0 500,000300,000 100,000 3.0 500.000300.000 75.000 4.0 500,000300,000 60,000 500,000300,000 50,000 10% capital cost, therefore, $200,000 average inventory costs $20,000 Calculate the cost of capital for b f above at the given 10% 150,000 100,000 75,000 60,000 50,000 Recalculate the cost of capital for a -fabove using 15% 200,000 150,000 100,000 75,000 60,000 50,000 Simplified reorder system Small store, one item example Given: a. Normal sales = 2 per month, b. Reorder time = 15 days, c. Maximum stock = 6 units and Safety stock = 1 unit (based on a desired customer satisfaction level of 95%) Determine the following Reorder point in units Reorder quantity