Questions from General Operations Management

Q: A big box electronics store sells 250 65-inch televisions during

A big box electronics store sells 250 65-inch televisions during the year. The store maintains an average inventory of five units. What is its inventory turnover? What implications does this have for...

Q: A manufacturer of large industrial electric motors has a cost of goods

A manufacturer of large industrial electric motors has a cost of goods sold of $111,690,000 and an average inventory value of $14,609,300. What is its inventory turnover? What does it mean?

Q: Bragg Johnson, materials manager at Johnson & Sons, has determined

Bragg Johnson, materials manager at Johnson & Sons, has determined that a certain product experienced 3.8 turns last year, with an annual sales volume (at cost) of $975,000. What was the average inven...

Q: Andrew Manufacturing held an average inventory of $1.1 million

Andrew Manufacturing held an average inventory of $1.1 million (raw materials, work-in-process, finished goods) last year. Its sales were $8.0 million, and its cost of goods sold was $5.8 million. The...

Q: Based on the following information, how many days of supply of

Based on the following information, how many days of supply of inventory is the firm holding (assume 250 days of operation per year)? Interpret your answer if the industry average inventory daysâ...

Q: Whew, I’m glad the town hall meeting is over. The

Whew, I’m glad the town hall meeting is over. The audience was hostile!” Tom Bourbon commented as he was escorted by a police officer to his car in the high school...

Q: Claiken Incorporated is a supplier of axles for light trucks. They

Claiken Incorporated is a supplier of axles for light trucks. They held an average axle inventory of $1.6 million last year, with a cost of goods sold of $21.0 million. What is the inventory turnover...

Q: What are total purchase and oversight costs if annual demand is 1

What are total purchase and oversight costs if annual demand is 1,000,000 units, the purchase price is $2.42, and the management oversight costs to monitor and expedite the trans-Pacific shipment are...

Q: What is the pipeline inventory value if average daily demand is 82

What is the pipeline inventory value if average daily demand is 82 units, the lead time is 20 days, and annual inventory carrying costs is $12?

Q: What are order cycle costs if annual demand is 8,000

What are order cycle costs if annual demand is 8,000 units, the order quantity is 1,000 units, and annual order cost is $97? What if the order size changes to 500 units or 8,000 units?