Product

Number Product Name

Units

Sold

Price

per

Unit

Profit

per

Unit

ES$1$ Indigo $664$ $$245\mathrm{.}70$ $$67\mathrm{.}76$

ES$2$ Black Cat $300$ $$167\mathrm{.}40$ $$23\mathrm{.}16$

ES$3$ Black Magic $1322$ $$206\mathrm{.}70$ $$35\mathrm{.}50$

ES$6$ Black Pebble $352$ $$167\mathrm{.}40$ $$16\mathrm{.}42$

ES$7$ True Red $560$ $$245\mathrm{.}70$ $$54\mathrm{.}28$

ES$10$ Roasted Red Pepper $352$ $$152\mathrm{.}00$ $$19\mathrm{.}90$

ES$13$ True Burgundy $508$ $$171\mathrm{.}60$ $$15\mathrm{.}23$

ES$14$ Pure Sand $144$ $$175\mathrm{.}50$ $$16\mathrm{.}44$

ES$18$ Polo Brown $1600$ $$198\mathrm{.}00$ $$20\mathrm{.}06$

ES$19$ Cheyenne $452$ $$247\mathrm{.}00$ $$79\mathrm{.}85$

ES$20$ Harvest $976$ $$222\mathrm{.}30$ $$55\mathrm{.}15$

ES$26$ Soft White $248$ $$202\mathrm{.}80$ $$34\mathrm{.}30$

ES$31$ Soft Cream $322$ $$179\mathrm{.}40$ $$23\mathrm{.}03$

Case Questions

$1.$ What is the inventory carrying rate?

$2.$ What is the current number of orders per year if Janet is making $4$ orders per week?

$3.$ What is the economic order quantity?

$4.$ What will be the number of orders per year based upon the economic order quantity?

$5.$ Assuming an overall $90\%$ certainty level, what is the reorder point?

$6.$ How would you perform the ABC analysis? Based on the ABC analysis, what would be your cutoff level? What probability would you assign to each cut$-$off level? How would this change the

reorder point? Make sure to explain your reasoning and support your solutions.

$7.$ As their consultant, what would be your recommendations to the Kysons?