What are the main features of JIT production, and what are its benefits and costs?
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What is supply-chain analysis, and how can it benefit manufacturers and retailers?
E00 for a retailer. The Fabric World sells fabrics to a wide range of industrial and consumer users. One of the products it carries is denim cloth, used in the manufacture of jeans and carrying bags. The supplier for the denim cloth pays all incoming freight. No incoming inspection of the denim is necessary because the supplier has a track record of delivering high-quality merchandise. The purchasing officer of the Fabric World has collected the following information: The purchasing lead time is 2 weeks. The Fabric World is open 220 days a year 144 weeks for 5 days a week. 1\. Calculate the EOQ for denim cloth. 2\. Calculate the number of orders that will be placed each year. 3\. Calculate the reorder point for denim cloth.
Jill's Custom Bags manufacturers and sells 12,000 customer designer bags per year, each requiring three yards of a specially manufactured fabric. These bags are sold evenly throughout the year. The materials for these bags require two months' lead time. Jill desires to maintain a safety stock of sufficient material to meet one month's demand. What is Jill's reorder point? a. 3,000 b. 6,000 c. 9,000 d. 12,000
Why do better decisions regarding the purchasing and managing of goods for sale frequently cause dramatic percentage increases in net income?
Backflush, two trigger points, completion of production and sale (continuation of \(20-37\) ). Assume the same facts for Acton Corporation as in Problem \(20-37\), except that now assume Acton uses a JIT production system and backflush costing with two trigger points for making entries in the accounting system: Completion of good finished units of product Sale of finished goods The inventory account is confined solely to finished goods. Any under- or overallocated conversion costs are written off monthly to cost of Goods Sold. 1\. Prepare summary journal entries for August, including the disposition of under- or overallocated conversion costs. Acton has no direct materials variances. 2\. Post the entries in requirement 1 to \(T\) -accounts for Finished Goods Control, Conversion costs Control, Conversion costs Allocated, and cost of Goods Sold.
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