Parts Emporium

1)Inventory system for EG151 exhaust gasket: graduation we sum up the gasket sales/demand for the 21 calendar calendar weeks that is habituated to us. This gives us a total of 2142 gaskets for 21 week period if we divide it by 21 we cause oneself clean weekly sales of 102 gaskets. As the take aim conception of conviction for gaskets is two weeks we multiply this cadence by 2 and we hurt a suppose of 204. We take a pencil eraser striving level of one week as this is the one-half of the lead time and we add this to the figure of 204 and we get down a order quantity of 306. This should be the reorder quantity for EG151. This in addition means that the sightly express allow for be 204/2 that is 102 plus sentry go stock 102 that is 204 units. Now in encase of EG151 the double-dyed(a) net income is 32 percent and so the enthronement in the lineage pass on be 68% of $12.99 that is $8.83. The make up of carrying this will be 21 percent that is $1.85. I f we multiply this by 204 units plant above we get a individually form cost of $337.40. Now if the ordering is done once each two weeks then the ordering cost will be 26 X $20 = $520. If this is added to the above cost we get a total of $857.40. Inventory system for DB032 drive belts: head start we sum up the gasket sales/demand for the 11 weeks that is precondition to us. This gives us a total of 520 drive belts for 11 week period if we divide it by 11 we get average weekly sales of 47.

27 drive belts. As the lead time for drive belts is three weeks we multiply this quantity by 3 and we get a figure of 142. We take a safety stock level of one and hal! f week as this is half of the lead time and we add this to the figure of 71 and we get a reorder quantity of 142. This should be the reorder quantity for DB032. This also means that the average stock will be 142/2 that is 71 plus safety stock 71 that is 142 units. Now in case of DB032 the gross profit is 48 percent and so the investment in the inventory will be 52% of $8.89 that is $4.67. The cost of carrying this will be 21 percent that is $0.98. If we multiply this by 142 units found above...If you involve to get a full essay, order it on our website: BestEssayCheap.com

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