<\/p>\n
The purpose of this assignment is for you to develop an inventory plan for the Jones company. You will accomplish this goal by performing an ABC analysis on Jones’ stock. You will also calculate the EOQ’s for the items.<\/p>\n
Instructions:<\/p>\n
Now that you\u2019ve assisted Jones Company with their customer demand forecasts, master schedule, and MRP schedule, it\u2019s time to help them get a handle on managing their inventories. You have two objectives.<\/p>\n
\n Part Number<\/p>\n<\/td>\n | \n Annual Usage<\/p>\n<\/td>\n<\/tr>\n |
\n 15A<\/p>\n<\/td>\n | \n 40,000<\/p>\n<\/td>\n<\/tr>\n |
\n 23A<\/p>\n<\/td>\n | \n 86,000<\/p>\n<\/td>\n<\/tr>\n |
\n 46B<\/p>\n<\/td>\n | \n 120,000<\/p>\n<\/td>\n<\/tr>\n |
\n 29C<\/p>\n<\/td>\n | \n 55,000<\/p>\n<\/td>\n<\/tr>\n |
\n 54C<\/p>\n<\/td>\n | \n 250,000<\/p>\n<\/td>\n<\/tr>\n |
\n 11D<\/p>\n<\/td>\n | \n 67,000<\/p>\n<\/td>\n<\/tr>\n |
\n 17E<\/p>\n<\/td>\n | \n 15,000<\/p>\n<\/td>\n<\/tr>\n |
\n 49F<\/p>\n<\/td>\n | \n 68,000<\/p>\n<\/td>\n<\/tr>\n |
\n 57F<\/p>\n<\/td>\n | \n 140,000<\/p>\n<\/td>\n<\/tr>\n |
\n 62G<\/p>\n<\/td>\n | \n 77,000<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n 2. Calculate EOQs for these items. Ordering costs for the first five items are $50 and for the second five items are $70. Carrying costs for the first seven items are $3 per unit per year and for the last three items are $4. Identify the total costs of obtaining inventory and the total cost of keeping inventory for each item.<\/p>\n NOTE:All submitted work is to be your original work. You may not use any work from another student, the Internet or an online clearinghouse. You are expected to understand the Academic Dishonesty and Plagiarism Policy, and know that it is your responsibility to learn about instructor and general academic expectations with regard to proper citation of sources as specified in the APA Publication Manual, 6th Ed. (Students are held accountable for in-text citations and an associated reference list only). <\/p>\n Required Elements of the ABC Assessment:<\/p>\n
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