Question

In: Other

Nationwide Auto Parts uses a periodic review inventory control system for one of its stock items....

Nationwide Auto Parts uses a periodic review inventory control system for one of its stock items. The review interval is 12 ​weeks, and the lead time for receiving the materials ordered from its wholesaler is 4 weeks. Weekly demand is normally​ distributed, with a mean of 125 units and a standard deviation of 25 units. Refer to the standard normal table LOADING... for​ z-values. a. What is the average and the standard deviation of demand during the protection​ interval? The average demand during the protection interval is nothing units. ​(Enter your response as an​ integer.)

Solutions

Expert Solution

Periodic review system also called fixed interval reorder system has four original economic order quantity assumptions: -

  • There are no restrictions on lot size.
  • ordering cost and carrying cost
  • demand should be independent
  • The lead time is constant.

Amanda K answered 2 years ago
Next > < Previous

Related Solutions

Weiss’s paint store uses a (Q, R) inventory control system to control its stock level. For...
Weiss’s paint store uses a (Q, R) inventory control system to control its stock level. For a particular popular white latex paint, historical data show that the distribution of monthly demand is approximately normal, with mean 28 and standard deviation 8. Replenishment lead time for this paint is about 14 weeks. Each can of paint costs the store $6. Although excess demands are backordered, the store owner estimates that unfilled demands cost about $10 each in bookkeeping and loss of...
Inventory Costing Methods - Periodic Method Fortune Stores uses the periodic inventory system for its merchandise...
Inventory Costing Methods - Periodic Method Fortune Stores uses the periodic inventory system for its merchandise inventory. The April 1 inventory for one of the items in the merchandise inventory consisted of 120 units with a unit cost of $355. Transactions for this item during April were as follows: Required a. Calculate the cost of goods sold and the ending inventory cost for the month of April using the weighted-average cost method. Do not round until your final answers. Round...
Fortune Stores uses the periodic inventory system for its merchandise inventory. The April 1 inventory for...
Fortune Stores uses the periodic inventory system for its merchandise inventory. The April 1 inventory for one of the items in the merchandise inventory consisted of 120 units with a unit cost of $375. Transactions for this item during April were as follows: April 9 Purchased 40 units @ $395 per unit 14 Sold 80 units @ $600 per unit 23 Purchased 20 units @ $400 per unit 29 Sold 40 units Required a. Calculate the cost of goods sold...
Periodic Inventory by Three MethodsDymac Appliances uses the periodic inventory system. Detailsregarding the inventory...
Periodic Inventory by Three MethodsDymac Appliances uses the periodic inventory system. Details regarding the inventory of appliances at January 1, purchases invoices during the next 12 months, and the inventory count at December 31 are summarized as follows:Required:1. Determine the cost of the inventory on December 31 by the first-in, first-out method.If the inventory of a particular model comprises one entire purchase plus a portion of another purchase acquired at a different unit cost, use a separate line for each...
Cansela Corporation uses a periodic inventory system and the LIFO method to value its inventory. The...
Cansela Corporation uses a periodic inventory system and the LIFO method to value its inventory. The company began 2018 with inventory of 5,600 units of its only product. The beginning inventory balance of $75,600 consisted of the following layers:    2,100 units at $11 per unit = $ 23,100 3,500 units at $15 per unit = 52,500 Beginning inventory $ 75,600    During the three years 2018–2020, the cost of inventory remained constant at $17 per unit. Unit purchases and...
Cansela Corporation uses a periodic inventory system and the LIFO method to value its inventory. The...
Cansela Corporation uses a periodic inventory system and the LIFO method to value its inventory. The company began 2018 with inventory of 6,100 units of its only product. The beginning inventory balance of $87,200 consisted of the following layers: 2,600 units at $12 per unit = $ 31,200 3,500 units at $16 per unit = 56,000 Beginning inventory $ 87,200 During the three years 2018–2020, the cost of inventory remained constant at $18 per unit. Unit purchases and sales during...
Hazelton Corporation uses a periodic inventory system and the LIFO method to value its inventory. The...
Hazelton Corporation uses a periodic inventory system and the LIFO method to value its inventory. The company began 2018 with $84,100 in inventory of its only product. The beginning inventory consisted of the following layers: 4,700 units at $7 per unit $ 32,900 6,400 units at $8 per unit 51,200 Total $ 84,100 During 2018, 6,700 units were purchased at $9 per unit and during 2019, 8,400 units were purchased at $10 per unit. Sales, in units, were 8,400 and...
Black, Inc. is an auto parts retailer which uses a perpetual inventory system. The company records...
Black, Inc. is an auto parts retailer which uses a perpetual inventory system. The company records its purchases at net cost and sales at full invoice price. Prepare journal entries (no explanations needed) for the following transactions. 10/5: Black purchased 150 Charge-Up batteries on account from White Co.. The total invoice price is $40 per battery ($6,000 total); terms of 2/10,n/30. 10/7: Black returned 20 batteries which had been ordered in error. The amount is to be deducted from the...
Capwell Corporation uses a periodic inventory system
Capwell Corporation uses a periodic inventory system. The company's ending inventory on December 31, 2011, its fiscal-year end, based on a physical count, was determined to be $326,000. Capwell's unadjusted trial balance also showed the following account balances: Purchases, $620,000; Accounts payable; $210,000; Accounts receivable, $225,000; Sales revenue, $840,000. The internal audit department discovered the following items:1. Goods valued at $32,000 held on consignment from Dix Company were included in the physical count but not recorded as a purchase.2. Purchases...
Broadhead Company uses a periodic inventory system.
Broadhead Company uses a periodic inventory system. At the end of the annual accounting period, December 31 of the current year, the accounting records provided the following information for product 2: Required: 1. Prepare a separate income statement through pretax income that details cost of goods sold for (a) Case A: FIFO and (b) Case B: LIFO.
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT