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GSCM 530 DeVry Week 7 Homework Assignment
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2. The following table contains data about the inventory for five items at Jones Corporation. Complete the missing items in the table.
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3. Suppose Jones Corporation in the above problem determined that its annual inventory carrying cost = 18 percent. The item unit cost was as follows:
Item 1 = $25.00
Item 2 = $60.00
Item 3 = $5.00
Item 4 = $10.00
Item 5 = $1.00
Compute the dollar values for the information in the above table, determine the annual inventory carrying cost for each item, and the total annual inventory carrying cost.
4. Again, using the data for Jones Company in problems 2 and 3, suppose Jones believes that in the upcoming year, the rate of sales expected for each of the five items is as follows:
Item 1 = 4,000 units per day
Item 2 = 2,000 units per day
Item 3 = 15,000 units per day
Item 4 = 7,000 units per day
Item 5 = 2,000 units per day
Compute the days of supply for each item.