Mba 624

Samantha Mahoney

MBA 624

Dr. Jiamin Wang

Assignment 1 Due Feb. 1

1. P. 30 Q. 2.4

A. Revenue: $100,000,000

Inventory: $5,000,000

COGS or Flow Rate= 100,000,000/2= $50,000,000 (100% mark up)

Inventory Turns= COGS = $50,000,000 = 10 turns /yr

Inventory $5,000,000

OR T= I = $5 M = .1 X 12 Months= 1.2 months

R 50 M

B. Inventory cost for a $30 (COGS) item:

Unit Inventory Cost = $30 X 40% = $1.20

10

2. P.30 Q2.5

A. Inventory= 1200 people

Time= 10 days

I= R X T = 1200= R X 10

Flow Rate= 1200= 120 people are arriving in La Villa everyday

10

B. Flow Time= 5 days

Inventory= 1200

Flow rate= I = 1200= 240 people arriving in La Villa Everyday

T 5

Previous year= (120 X $50) + (1080 X $30)= $38, 400

Present year= ( 240 X $50) + (960 X $30) = $40,800

% change in Revenue= $40,800- $38,400= 6.25% change in revenue

$38,400

3. P. 30 Q 2.8

A. Associate Manager Partner

I=200 I=60

I= 20

T= 4 years T= 6 years T= 10 years

I= 200 Associates

T= 4 years

R= I = R= 200 = 50 associates/year 50 MBA’s must be hired every year .

T 4

B. I= 20

T= 10

I= R X T = 20 = 10 X R

R=2 MBA’s will become partner every year

2 = 1 = 4 % of incoming MBA’s will become partner. 50 25

4. P. 31 Q. 2.9

A. Inventory= 3,643 Million

Flow Rate= 4,1651 Million

Inventory Turns= COGS = $41, 651 M = 11.43/year

I $3, 643 M

B.

Annual Per unit Inventory Cost for Costco = $5 X 30% = = $.13/year

11.43

Wal-Mart

Inventory Turns = $215,493= 7.32/ year...