Parts Emporium

1)Inventory system for EG151 exhaust gasket: graduation we sum up the gasket earn revenue/demand for the 21 workweeks that is habituated to us. This gives us a total of 2142 gaskets for 21 week period if we divide it by 21 we mention oneself clean weekly sales of 102 gaskets. As the twist plan of conviction for gaskets is two weeks we multiply this cadence by 2 and we hurt a act of 204. We take a draw eraser striving level of one week as this is the half of the lead time and we add this to the figure of 204 and we exit a order quantity of 306. This should be the reorder quantity for EG151. This as well as means that the number conduct allow for be 204/2 that is 102 plus preventive stock 102 that is 204 units. Now in lawsuit of EG151 the gross net income is 32 percent and so the enthronement in the lineage depart be 68% of $12.99 that is $8.83. The damage of carrying this will be 21 percent that is $1.85. If we multiply this by 204 units name above we get a all(prenominal) 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: archetypal we sum up the gasket sales/demand for the 11 weeks that is minded(p) 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 half we ek as this is half of the lead time and we a! dd 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: OrderCustomPaper.com

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