A store reports monthly inventory as shown in Table 2. The c…
A store reports monthly inventory as shown in Table 2. The company’s inventory carrying cost % is 15%. [Begin Selection] Table 2. Inventory by category each month in thousands of US dollars. Category Jan Feb Mar April May June July Aug Sept Oct Nov Dec Gold $100.00 $181.05 $83.01 $125.57 $188.15 $195.12 $144.21 $166.43 $94.69 $180.41 $115.45 $39.09 Diamonds $75.00 $114.00 $43.91 $45.54 $50.20 $136.08 $19.11 $19.95 $2.43 $9.82 $89.24 $128.86 Platinum $90.00 $21.75 $39.72 $35.40 $15.85 $83.10 $98.22 $18.84 $83.10 $169.02 $117.57 $173.22 Other stones $30.00 $22.65 $22.10 $46.21 $20.94 $47.16 $9.14 $23.37 $37.90 $52.46 $39.89 $19.38 Other metals $40.00 $61.71 $71.39 $38.92 $23.27 $14.84 $18.70 $70.22 $34.42 $56.66 $58.83 $5.96 [End Selection] Which value best describes the store’s inventory investment?
Read DetailsA jeweler has a distribution center in Atlanta (3-Digit ZIP…
A jeweler has a distribution center in Atlanta (3-Digit ZIP 303) and a store in Saint Augustine, Florida (3-Digit ZIP 320). The USPS categorizes shipments from 3-Digit ZIP 303 to 3-Digit ZIP 320 as Zone 3 shipments. The store in Saint Augustine sells $1,000,000 worth of goods (valued at cost of goods) and the average value per pound of the company’s goods is $1,000/lb. The company uses a 15% inventory holding cost. Ignore inventory investment in shipping at the DC — the USPS picks up from the DC on a schedule independent of the shipment size. Question: From a purely financial perspective, what is the ideal shipment size in pounds per shipment to the store in Saint Augustine using the USPS as the carrier? Download Table 1 to find the postage costs per package based on the weight of the package and the Zone of the shipment. Remember there are 16 ounces in a pound and note that Table 1 includes first, weight ranges by ounce and then weight ranges by pound. Table 1: Postage Costs per package based on Weight and Zone.
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