A company buys an item for €50 and sells it for €75.The annual sales and average stock of this item is 10000 units and1600 units, respectively; while the carrying cost is 20 percent of itsacquisition cost. Calculate:a) inventory turnoverb) weeks of supplyc) annual gross profitd) average investment in stocke) annual inventory carrying costWould the company operate more efficiently, if average stock isreduced to 1000 units?

A company buys an item for €50 and sells it for €75.The annual sales and average stock of this item is 10000 units and1600 units, respectively; while the carrying cost is 20 percent of itsacquisition cost. Calculate:a) inventory turnoverb) weeks of supplyc) annual gross profitd) average investment in stocke) annual inventory carrying costWould the company operate more efficiently, if average stock isreduced to 1000 units?

Name: A company buys an item for €50 and sells it for €75.The annual sales a
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Description: A company buys an item for €50 and sells it for €75.The annual sales and average stock of this item is 10000 units and1600 units, respectively; while the carrying cost is 20 percent of itsacquisition cost. Calculate:a) inventory turnoverb) weeks of s

Purchasing and Supply Chain Management

6th Edition

ISBN:9781285869681

Author:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson

Publisher:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson

Chapter16: Lean Supply Chain Management

Section: Chapter Questions

Problem 10DQ: The chapter presented various approaches for the control of inventory investment. Discuss three...

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The chapter presented various approaches for the control of inventory investment. Discuss three additional approaches not included that might involve supply chain managers.
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hello, can someone help me with this question?: if a company regularly holds 50 units of safety stock of a product and places orders in quantities of 500 units for the same product, what would be the average warehouse inventory for that product?
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