Question
Please enter into excel the following situation for items in inventory at Target. There is a popular skin care product, Glossier Milky Jelly Gentle Gel
Please enter into excel the following situation for items in inventory at Target.
There is a popular skin care product, Glossier Milky Jelly Gentle Gel Face Cleanser which costs $19.00
The total items in inventory is 160,000. It cost the store $65 dollars to place an order. Due to shoplifting it costs 35 percent of the holding cost for the inventory. The days that the store is open is 300 days per year. It takes 3 days to deliver the items to the store.
Given this data please calculate and upload the excel file with the Economic Order Quantity, Annual Inventory Holding Cost, Annual Inventory Ordering Cost, Total Annual Cost, Maximum Inventory Level, Average Inventory Level, Reorder Point, Number of Orders per Year, and Cycle time in Days. (displaying the data in excel is acceptable).
In addition, answer the following two questions:1) If we decided to put the item behind glass to lower the holding cost to 20 percent would it be worth installing the glass display if it costs $2000? Explain. 2)Given that the shoplifting would lower the annual holding costs, would it change the ordering costs? Explain.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started