Subject: Upgrading our Inventory System software Our inventory system has been an issue for several years, it seems to affect our job and puts a damper on our sales. I would like to bring to your attention that our warehouse runs on the same software as the inventory and we had to face some issues with the system we have today. Because of the computer system we have we could not account for all the inventory that is available on daily bases. It causes conflict with actual inventory is available in the
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begins in January with 200 units on hand. Stockout cost of lost sales is $100 per unit. Inventory holding cost is $20 per unit per month. Ignore any idle-time costs. The plan is called plan A. Plan A: Vary the workforce level to execute a “chase” strategy by producing the quantity demanded in the prior month. The December demand and rate of production are both 1,600 units per month. The cost of hiring additional workers is $5,000 per 100 units. The cost of laying off workers is $7,500 per 100 units.
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a) Vela owns and occupies a building that was completed last year and occupied for the first time on January 15, 2006. (Previously, the company had rented premises.) The building cost $384,000, has an estimated 20-year useful life, and an estimated residual value of $34,000. Annual amortization of $17,500 has not been recorded. Dec. 31 | Amortization Expense | | 17,500 | | | Accumulated Amortization - building, Building | | | 17,500 |
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amount of sales per square foot, the highest inventory turnover rates, and net operating profit of any of its major competitors. This powerhouse manages approximately $32 billion in inventory and stocks products manufactured in more than 70 countries worldwide. With these kinds of numbers, it is vital that Walmart is able to continue to effectively and efficiently run its supply chain. The organization is dedicated to a business strategy that drives out costs and enables consumers to save money and
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minimizes all the inventory holding costs and ordering. Kanban aligns inventory levels with actual consumption. The two systems help find the level of inventory that would reduce the holding and ordering costs. Kanban is a demand forecasting system that order on demand and economic order quantity orders on demand for the product that are sold and delivered at the point where inventory reaches zero. The two are based on assumption of lead-time, demand, purchase price, and costs are all constant. Kanban
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BACKGROUND OF STUDY Inventories are the key resource in an industrial enterprise since NO production is possible without inventories. Inventories also form a major constituent of the cost of the product and therefore proper control over their procurement, storage, issue, movement and consumption is necessary. Before going further it is necessary to define what does inventory mean? Inventories are Assets: a) Held for sale in the ordinary course of business. b) In the process for
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Assignment 4. Required: 1. Evaluate Breezy’s Working Capital Management in 2002 and 2003. Do you consider there to be a deficiency or excess in Breezy’s working capital levels relative to the industry? 2. Calculate Days Inventory, Days Receivable and Days Payable for 2002 and 2003 (using average balance sheet amounts where relevant). What is the funding gap for Breezy in each of these periods? What does this mean in terms of Breezy’s growth strategy? 3. How can Breezy improve its working capital
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Figure 1. The Vancouver Supply Chain Manufacturing was based out of a single unit located in Vancouver (USA). Production unit maintained adequate safety stocks for raw materials. Production was based on Kanban concept. Production unit did not carry inventory and functioned on made to order scheme to replenish stocks at Distribution centers. Supply variability was minimal due to Kanban and safety stocks. Stocks produced at the Vancouver unit were shipped to three distribution centers one in each region
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A marketer is said to be using a multi-channel or hybrid distribution system when he utilizes more than one distribution design. As we have studied earlier in the example of Starbucks, multiple distribution designs are put to use in the distribution of its product. It uses a direct retail system when it sells its products in company-owned stores, a direct marketing system by selling via direct mail and single party selling system is put to use when its products are sold through grocery stores. Apart
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To: Audit Senior From: Sara Smith Date: 09/14/2014 RE: Testing the NRV of Inventory The focus of this audit is to determine the appropriateness of company XYZ’s inventory on hand. By doing so, the audit will focus on testing the net realizable value of inventories on hand as of December 31,2007 using IDEA. The assertions tested in evaluating the net realizable value of inventory include the following, valuation, rights & obligations, completeness and existence. But, due to the limited
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