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Provide the following based on the data provided. D = H = . 3 5 0 $ 1 7 5 = C = s =
Provide the following based on the data provided.
$
Weekly Demand
Using Present Lot Size
Presently orders are being placed every Weeks. We find this by using the Iime Between Orders formula.
How many orders per year are being placed annually?
Do Not Round. decimal places
According to the information supplied, what is the present annual inventory cost? In other words, using their present lot size what is the annual inventory cost? Also, separately identify, the annual cost of purchasing the inventory, the annual holding cost AHC and annual ordering cost AOC
AOC
AHC
Buckshot Electronics is a chain of electronics superstores that is localed throughout Califomia. They have locations concentrated primarily in heavily populated areas. They sell thousands of products made by hundreds of different manufacturers. Buckshot sells everything from phones, video cameras, and video game consoles to large items like televisions.
Sony is one of their larger suppliers. They offer products in nearly every category Buckshot offers to its customers. In fact, Sony sells multiple cell phone models through Buckshot. One such model is the Q
One of Buckshot's San Francisco stores is forecasted to sell about units of the Q in the coming year. This forecasted demand is about average in terms of Buckshot's other Calfornia locations. Presently they order units of the Q every weeks.
Each store fills weekly orders through its Sony Distributor for items like TVs cameras, and of course, cell phones, in addition to many other items. Orders for cell phones must be made in increments of units. The distributor takes only one order per week, but Buckshot is not obligated to order every item every week. That order is then shipped days later to that individual Buckshot Electronics location by truck.
Buckshot's Central Procurement is looking to save money by investigating order sizes and subsequent order frequency. You are being asked to create a recommendation for order size and time between orders for the Q based on the numbers for this San Francisco location. Answer the questions that follow in order to create a detailed report for your supervisor.
Below are some the kev figures important in vour analysis:
Q Wholesale Price
$
Q Retail Price
$
Annual Per Unit Holding Costs are estimated at of the wholesale cost of the Q
Costs associated with each order include:
Order Placement Fees Documentation Network Support $
Delivery Fuel Driver, Truck, etc. $ $
Packaging
Receiving Inspection Documentation, etc.
Labor hours @ $ Stocking, Misc.
$
S
s
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