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Panoramic Frames is the largest picture frame manufacturer in Huston, USA. Spectacular Frames mass produces generic frames and then customizes each frame based on customer specifications. Panoramic Frames uses three distinct picture frame materials which are wood, silver, and gold plated frames. The most expensive frame is the gold, then silver, and last is the wood frames. Panoramic Frames typically has 7000 generic frames on hand at any given time. Panoramic Frames employs an ABC inventory classification system. Around 8% of frames are gold plated, 35% are silver, and the remaining frames are wooden. Shelly Messina, the company's Operational Manager, would like the inventory regularly counted for control and audit purposes. Shelly puts a plan in place to count the pieces:

Gold plated monthly, silver quarterly, and wood semi-annually. Shelly uses 20 working days per month in her inventory calculations.

A) Compute the daily count of items by utilizing the cycle counting method.

Operation Management, Management Studies

  • Category:- Operation Management
  • Reference No.:- M92291956

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