Question

In: Operations Management

QUESTION 1 Firms will likely pay less on inventory holding cost as their inventory turns decreases....

QUESTION 1

Firms will likely pay less on inventory holding cost as their inventory turns decreases.

True

False

QUESTION 2

Firms with higher levels of perishable product, tend keep a higher Days-of-Supply to prepare for unexpected demand.

True

False

QUESTION 3

While Tier 2 suppliers are not always vendors that a manufacturer would order directly from, it's important that they perform audits on these vendors.

True

False

QUESTION 4

Decision-making in supply chain is very important because tactical and strategic decisions can have big impacts on your profit margins.

True

False

QUESTION 5

On Average Best Buy keeps about $70,500 worth of HDMI wires in their store backroom. This last them about 75 days. They sell 7 days a week and may have to write off the inventory after 75 days.

How many inventory dollars worth of HDMI wires inventory does Best Buy sell per day?

Could you please be kind enough and answers these questions? Thank you so much for reading this and have a good one!

Solutions

Expert Solution

Answer:

1.False

Explanation:

If their inventory turnover decreases it means that they are holding the inventory for longer than the measured time periods.This also indicates that there is poor management of inventory or it decline in sales.If inventory turnover decreases it increases the average inventory and increases the days inventory outstanding and the inventory holding costs also increases until the stocks are sold

2.False

Explanation:

In case of perishable products it cannot be hold in inventory for long time.So they produce products only based on the demand.If the demand falls then the products are of waste and they cannot keep it for long time and supply those products

3.True

Explanation:

Conducting an audit is very important before signing the contract with vendors so that if any quality failure or system failures occur they would be responsible to rectify it

4.True

Explanation:

Tactical and strategical decisions have to be made to increase the market share.Based on the strategies followed the company can gain the market share which inturn increases sales and profit margins.Correct strategies must be used to gain market share and it will have big impact on profit margins

keosha answered 1 year ago
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