Given the Following Data

question 67

Essay

Given the following data:

The end product J is made from components K, and L. K is made from M, N, and O.
(a) What is the replenishment lead time for J, assuming there are no inventories?
(b) Calculate the gross requirements for each of the components if the company plans to build 10 of its J model. Assume that there are no beginning inventories.
(c) Calculate the gross requirements for each of the components if the company plans to build 10 of its J model if you have these beginning inventories: 20 K and 80 M.
(d) What is the replenishment lead time if the company plans to build 10 of its J model, assuming the beginning inventories given in (c) above?

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Definitions:

Beginning Inventory

The value of all the inventory held by a company at the start of an accounting period, used to calculate the cost of goods sold.

Net Purchases

The total amount of purchases made by a business after subtracting returns, allowances, and discounts.

Net Purchases

Net Purchases refers to the total amount of purchases made by a company after subtracting any returns, allowances, and discounts received.

Ending Inventory

is the total value of goods available for sale at the end of an accounting period after accounting for all additions and subtractions during the period.