Weekly Inventory Practice - Assignment Example

Unit of Weekly inventory practice In the calculation of the inventories of different transactions there is a need to learn more on the best ways of doing the tasks (Quick, Schoop and Jeusfeld). There are already styles and formulas that are in use in calculating the given ratios (Quick, Schoop and Jeusfeld). The following are the solutions of the problem in the weekly inventory exercise. Problem one solution The annual demand for SKU 10075 units The units per one order are 650 units a. The average inventory 10075/2= 5037.5 b. The number of order that are in the year 10075/650= 15.

5 0rders Problem two solutions a. Annual cost of ordering= number of order*cost per unit (Quick, Schoop and Jeusfeld) (10000/600)*$30= $500 b. Annual carrying cost= average inventory* unit cost* carrying cost (Quick, Schoop and Jeusfeld) (10000/2)*$15*($30*0.2)= $450000 The Annual total cost = the annual ordering value cost+ the annual carrying order cost (Quick, Schoop and Jeusfeld) $450000+$500= $450,500 Problem three solutions a. Average inventory 5200/2= 2600 b. Number of orders placed 5200/500= 10.

4 orders c. Annual inventory carrying cost= 2600*10* 0.2*40= $208000 d. Annual ordering cost= 10.4*40= $416 e. Annual cost= 416+208000= $208416 Problem four solutions EOQ= (10000*100*2)0.5/(250*0.35)= 16.16 units Problem five EOQ= ((5200*10*2)0.5/ (200*0.2))*10= $80.62 Problem six solutions Inventory return= annual cost of goods sold/ average inventory in dollars (Quick, Schoop and Jeusfeld) Therefore the answer for the task is, it is equivalent to= 24/6 The actual ratio is therefore a description as 4:1 References Quix, Christoph, Mareike Schoop, and Manfred Jeusfeld.

Business Data Management For Business-To-Business Electronic Commerce. ACM SIGMOD Record 31.1 (2002): 49. Web.