Calculating Average Annual Transportation Inventory for Deb’s Delightful Dresses

To calculate the average annual transportation inventory for each alternative, we need to consider the transit time and the demand for DDD gowns.

• Regular Parcel Service (4 days transit time):
  • Average annual transportation inventory = Demand * Transit Time / 2
  • Average annual transportation inventory = 3000 gowns * 4 days / 2
  • Average annual transportation inventory = 6000 gowns
• Premium Parcel Service (2 days transit time):
  • Average annual transportation inventory = Demand * Transit Time / 2
  • Average annual transportation inventory = 3000 gowns * 2 days / 2
  • Average annual transportation inventory = 3000 gowns
• Public Carrier (8 days transit time):
  • Average annual transportation inventory = Demand * Transit Time / 2
  • Average annual transportation inventory = 3000 gowns 8 days / 2
  • Average annual transportation inventory = 12000 gowns

Therefore, the average annual transportation inventory for each alternative is as follows:

• Regular Parcel Service: 6000 gowns
• Premium Parcel Service: 3000 gowns
• Public Carrier: 12000 gowns

Calculating Inventory Turnover, Weeks of Supply, and Days of Supply for Modern Office Chairs

To measure inventory effectiveness for Modern Office Chairs (MOC), we can calculate inventory turnover, weeks of supply, and days of supply using the given information.

• Inventory Turnover:
  • Inventory Turnover = Cost of Goods Sold / Average Inventory
  • Inventory Turnover = $5,000,000 / $500,000
  • Inventory Turnover = 10 times
• Weeks of Supply:
  • Weeks of Supply = (Average Inventory / Cost of Goods Sold) * Number of Weeks in a Year
  • Weeks of Supply = ($500,000 / $5,000,000) * 52 weeks
  • Weeks of Supply = 5.2 weeks
• Days of Supply:
  • Days of Supply = (Average Inventory / Cost of Goods Sold) * Number of Days in a Year
  • Days of Supply = ($500,000 / $5,000,000) * 365 days
  • Days of Supply = 36.5 days

Therefore, the inventory turnover for MOC is 10 times, the weeks of supply is 5.2 weeks, and the days of supply is 36.5 days.

Calculating Average Inventory Level, Number of Orders Placed Per Year, Total Annual Holding Cost, Total Annual Ordering Cost, and Total Annual Cost for Edward’s Electronic, Inc.

To calculate the various costs and quantities for Edward’s Electronic, Inc., we can use the provided information.

• Average Inventory Level:
  • Average Inventory Level = Order Quantity / 2
  • Average Inventory Level = 1500 units / 2
  • Average Inventory Level = 750 units
• Number of Orders Placed Per Year:
  • Number of Orders Placed Per Year = Annual Demand / Order Quantity
  • Number of Orders Placed Per Year = 6000 outlets / 1500 units
  • Number of Orders Placed Per Year = 4 orders
• Total Annual Holding Cost:
  • Total Annual Holding Cost = Average Inventory Level * Annual Inventory Holding Cost Rate
  • Total Annual Holding Cost = 750 units * $5 per unit
  • Total Annual Holding Cost = $3750
• Total Annual Ordering Cost:
  • Total Annual Ordering Cost = Number of Orders Placed Per Year * Cost to Place an Order
  • Total Annual Ordering Cost = 4 orders * $75 per order
  • Total Annual Ordering Cost = $300
• Total Annual Cost:
  • Total Annual Cost = Total Annual Holding Cost + Total Annual Ordering Cost
  • Total Annual Cost = $3750 + $300
  • Total Annual Cost = $4050

Therefore, the average inventory level for Edward’s Electronic, Inc. is 750 units, the number of orders placed per year is 4 orders, the total annual holding cost is $3750, the total annual ordering cost is $300, and the total annual cost is $4050.