The McDonald’s fast-food restaurant on campus sells an average of 4,000 quarter-pound hamburgers each week
The McDonald’s fast-food restaurant on campus sells an average of 4,000 quarter-pound hamburgers each week. Hamburger patties are resupplied twice a week, and on average the store has 350 pounds of hamburger in stock. Assume that the hamburger patties cost $1.00 a pound. What is the inventory turnover for the hamburger patties? On average, how many days of supply are on hand?
| There are 5 key factors you need to consider when making your calculations, the are: |
| 1 You must calculate the transportation cost in each case for truckload and less than truckload. |
| 2. Truck load sizes are 40,000 lbs or 1818 motors per load so the unit price for supplier 1 is $500.00 |
| price for ltl supplier 1 will be $510 use 505 for supplier 2 in both cases |
| 3. You need to calculate your order processing costs and your Inventory carrying cost |
| 4 Tooling costs are given |
5. you need to calculate annual purchase cost
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