Answer:
Hello, your inquiry appears incomplete; below is the full question
Jim Connor is the proprietor of Wave Riders, a surf shop situated in West Palm Beach, Florida. Jim has recently received his financial summaries for the year from his accountant. Upon viewing his gross and net income, he feels troubled. Despite nearly $250,000 in gross profit, he fails to comprehend why he consistently faces cash shortfalls for paying employees and suppliers. One of his key suppliers of surfboards just notified him that credit will no longer be extended, requiring pre-payment for all orders. He contacts his accountant to arrange a meeting regarding the financial stability of his business
Average inventory turnover ratio: Wave riders = 2.5, Industry = 6.85 (calculated)
Answer: Recommendations for Jim to enhance the company's financial health would be to prioritize selling off older inventory before placing new orders
Explanation:
The suggestion is to help Jim boost the company's financial performance, as the Wave Riders' average inventory turnover ratio is lower than that of the industry, likely due to inadequate inventory management (overstocking or insufficient sales) affecting their financials.
Response:
A) 100
Clarification:
total sales 3,600 units
cost per unit $200
order placement cost $40
holding cost is $20 annually
working days 360 yearly
lead time is 5 days
Should Mark purchase 200 units per order, what would his average stock be?
daily sales = total sales / working days = 3,600 / 360 = 10 units daily
orders each year = 3,600 / 200 = 18
Mark's order frequency = 360 days / 18 orders = 20 days
average inventory = (200 units / 20 days) x 10 days = 100
I presume Mark has some safety inventory to ensure he can cover the 5-day lead time.
The choices for this inquiry are not provided; here is the section that is absent:
What two kinds of departmentalization can be seen in this instance?
A. Product and customer
B. Product and geographical
C. Customer and geographical
D. Functional and customer
E. Geographical and functional
The correct response to this query is B. Product and geographical
Explanation:
Departmentalization is the process of forming departments, units, etc., within businesses to enhance goal achievement and allocate roles and tasks. This can occur based on various factors such as geography, products, or functions.
In the situation of Spicy Dish, a distinct geographical departmentalization is apparent since the distributor has organized units according to location, allowing the company to have a unit in every significant geographical area like North America, Europe, etc. Additionally, this firm has established units according to products as it has created two distinct units in North America, with each focusing on a different product (beans/salsa.)
