1. How could a grocery store use inventory to increase the responsiveness of the company’s supply chain? The logistical driver of inventory encompasses all raw materials, work in process, and finished goods within a supply chain. A grocery store can be more responsive if it offers a broader variety. A grocery store should use products that can last for a significant amount of time and does not hold a high demand in its current time. 2. How could an auto manufacturer use transportation to
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[pic] Incorporated in 1981, Cherat Cement is a premier name in the filed of cement manufacturing. The Company is listed on Karachi, Lahore and Islamabad Stock Exchanges. The Factory, located near Nowshera, N.W.F.P, is built on land bordering the Cherat Hills, the Company’s source of high quality limestone. Cherat Cement has an ISO 9001:2000 certification and manufacturers high quality grey Portland cement using modern and sophisticated production facilities. It is also equipped with advanced production
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intercompany sales after deducting selling and administrative expenses rather than gross profit is to include selling and administrative expenses associated with the intercompany sale in consolidated inventories. Support for the gross profit approach is based on the proposition that consolidated inventory balances should include manufacturing costs only and that generally accepted accounting standards normally preclude the capitalization of selling and administrative costs. 3. When the subsidiary is
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work together as a cohesive unit to produce the desired product for a profit. Altius Directory (2006-2013), “The ultimate purpose of supply chain management is to have a steady flow of inputs into the production unit, reduce the problem of excess inventories and reduce the cost of production errors (Supply Chain Logistics Management, Current Trends section). However, prior to implementing a successful supply chain, it is necessary to determine which strategy is best for your particular industry. A.
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reviewing a 5 year financing plan prepared for the company by Harry Finson, Chief financial officer. After some study, Mr. Watson identified several questions for further consideration and resolution: 1. In view of the uneven growth in sales, inventories and receivables and earnings in the past were Mr. Finson’s 5 year forecast useful? Mr. Finson’s 5 year forecast is somewhat useful because the
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Inventory Proposal QRB/501 May 13, 2013 Inventory Proposal Draft Part of a business’s ability to become successful depends on the business’s ability to properly inventory merchandise needed in its operations. An organization inventory includes ordering, storing, and managing supplies needed to help the organization function efficiently. Improperly managing an organizations inventory can affect the organization
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current assets excluding inventory for every $1.00 in current bills. Martin will not have to rely on selling their inventory to pay their upcoming obligations. Activity group In the activity group Martin Manufacturing has no trend in the inventory category over the last three years(5.2, 5, 5.29). Their inventory turnover of 5.29 for the current year is bad when compared to an industry average of 10.2, this tells me that Martin may have an inadequate finished goods inventory. The Average Collection
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a merchandising business on December 1 and enters into three inventory purchases: December 7 10 units @ $6 cost December 14 20 units @ $12 cost December 21 15 units @ $14 cost Trader sells 15 units for $25 each on December 15. 8 of the sold units are from the December 7 purchase and 7 are from the December 14 purchase. Trader uses a perpetual inventory system. Determine the costs assigned to the December 31 ending inventory when costs are assigned based on (a) FIFO, (b) LIFO, (c) weighted
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THE MEDICAL DEVICES COMPANY Inventory is one of the most beneficial strategies, a valuable asset, and it can be easily converted into liquid cash without undergoing large cost. In the case of a Medical Device Company, many ask whether there is too much inventory in the system; and the fact is that there is too much inventory in the MDC system. This reflects on the company’s poor formulation of policies and the companies may end up tying working capital, which in turn may cause customer retention
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which are needed to finance, these resources is called working capital 3. “Working capital may be defined as all the shot term assets used in daily operation”—John. J Harpton. 4. Short term assets of a firm means cash money, short-term securities, inventory, Bill receivable, note receivable, Debtors etc. 5.In operating daily business, fixed assets are also needed in addition to current assets. Though some fixed assets help on the daily operation of a firm, these can’t be told as working capital, because
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