Problem a a company makes t-shirts used by local gyms, Ask an Expert

Accounting

Problem A: A company makes T-shirts used by local gyms. Fabric is the primary raw material. Demand is onstant but the lead time for getting fabric can vary.

They need - 100 bolts/day

Lead time from their primary vendor - 10 days

Standard deviation of lead time - 1 days

The desired level of services is - 97%

a. What amount of safety stock is appropriate?

b. What is the reorder point for this item? (Round up if necessary.)

Problem B: Ice Dreamery makes various kinds of ice cream, including walnut fudge. The demand for walnut fudge varies, based on weather and other factors. The company wants to determine the reorder point for the walnuts.

Average pounds of walnuts needed - 20 pounds per day

Standard deviation of demand - 5 pounds

Customer service level desired - 90%

Lead time - 4 days

a. What amount of safety stock is appropriate?

B. Determine the reorder point. (Round up if necessary.)

Problem C: a. If the stock out risk level is set at 7%, what's the z factor? Two decimals.

b. If z = 2.17, what's the risk of a stockout? (Express as a percentage. Two decimals.

View complete question

Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M92204260

Have any Question?Write your Review or question?

Related Questions in Accounting Basics

Question - the blending department of luongo company has

Question - The Blending Department of Luongo Company has the following cost and production data for the month of April. Costs: Work in process, April 1 Direct materials: 100% complete $100,000 Conversion costs: 20% compl ...

Question - the following data was extracted from the

Question - The following data was extracted from the records of Winsam Company Sales Revenue 450 units @ $35 per unit Beginning Inventory 100 units @ $16 per unit Purchases 400 units at $20 per unit What is the gross pro ...

Question - computing a basket purchase allocation and

Question - Computing a Basket Purchase Allocation, and Recording Depreciation under Three Alternative Methods At the beginning of the year, Wong's Martial Arts Centre bought three used fitness machines from Hangar Inc. f ...

Question - freedom co purchased a new machine on july 2

Question - Freedom Co. purchased a new machine on July 2, 2016, at a total installed cost of $42,000. The machine has an estimated life of five years and an estimated salvage value of $6,700. Required: Calculate the depr ...

Question you plan to be open 50 hours per week for 20 weeks

Question: You plan to be open 50 hours per week for 20 weeks in the year. You therefore anticipate operating costs of $100,000 per year. You would be able to borrow $1,700,000 you need to get started under a 20-year loan ...

Assignment 1 depreciation and nontaxable propertycompanies

Assignment 1: Depreciation and Nontaxable Property Companies buy, use, and sell many types of property as a part of business operations. The amount involved can be substantial as can be the tax implications. Based on you ...

Part abackgroundsaturn petcare australia and new zealand

Part A Background: Saturn Petcare Australia and New Zealand is Australia's largest manufacturer of pet care products. Saturn have been part of the Australian and New Zealand pet care landscape since opening their first m ...

Quesiton instructions first locate the financial statement

Quesiton: Instructions: First, locate the financial statement (10 - K Annual Reporting) information for each company (listed below) that you will be investigating for your final project. This information can be found on ...

Question - internet assignment search the internet an

Question - Internet Assignment Search the Internet (an entity's website) and find an audit report of the entity's audit of internal control over financial reporting. Determine the following: 1. Did the entity used the co ...

Question - the following information is available for the

Question - The following information is available for the Starr Air Corporation: Sales - $750,000 Cost of goods sold - 410,000 Gross profit - 340,000 Operating Income - 85,000 Net Income - 42,000 Inventory, beginning yea ...

4,153,160 Questions Asked
13,132 Experts
2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Recent Questions

Ask Accounting Basics Expert