You are preparing a project to lay fiber optic cable. The firsttask is to mobilize the team. You estimate this will take one weekand cost $3000. The second task is to lay the cable. This will takethree weeks and will cost $45,000. The total length of the cable is15 miles. The last task, which will take one week, is to Terminateand test the cable. You budget $5000 for this. At the end of thefirst week, you have completed mobilization, but it cost a total of$4500. At the end of the third week, you have completed five milesof cable at a total cost of $28,000 (installation only). It takesyou a total of 10 weeks to complete the entire project, for a totalcost of $65,000. At the end of week 1: What is your SPI? What isyour CPI? What is your EAC? At the end of week 3: What is your SPI?What is your CPI? What is your EAC? At the end of the project: Whatis your SPI? What is your CPI? What is your EAC?

OneClass: You are preparing a project to lay fiber optic cable. The firsttask is to mobilize the team...

You are 4 months into a 6 month project. The project is linear,which means that the progress and spending occurs at a constantrate. Our crack project team of highly skilled associates hasworked diligently and put in extra hours to keep the project going.Our accounting department has provided the following data at theend of month 4:

Actual cost to date = $88,800

Planned expenditures to date = $101,000

The CFO is excited and has sent you an email congratulating you forbeing 12.07% under budget. However, is it really time to hold ateam celebration? That would be fun but your project managermentality kicks in. Those numbers look good but how are weÃ¢â¬ËreallyÃ¢â¬â¢ doing? To understand the true project performance, weneed to apply earned value techniques.

The missing piece we need is Earned Value (i.e. what we haveactually accomplished so far). You meet with your team and findthat only 6 of the 7 tasks scheduled to be complete by the end ofmonth 4 have actually been completed. Task 7 isnÃ¢â¬â¢t even started!This information gives you the final data you need to applyÃ¢â¬ËEarned ValueÃ¢â¬â¢ and develop an objective analysis.

1. What are the PV, EV, and AC for the project at the end of month4?
2. What are the SV, CV, SPI, and CPI for the project?
3. Assess the project performance to date? Do you get to have thecelebration?

Buckshot Electronics is a chain of electronics superstores that is located throughout California. They have 15 locations concentrated primarily in heavily populated areas. They sell thousands of products made by hundreds of different manufacturers. Buckshot sells everything from phones, cameras, DVD players, and video game consoles to large items like televisions.

Sony is one of their larger suppliers. They offer products in nearly every category Buckshot offers to its customers. In fact, Sony sells multiple cell phone models through Buckshot. One such model is the Q9900.

One of Buckshot's San Francisco stores is forecasted to sell about 7800 units of the Q9900 in the coming year. This forecasted demand is about average in terms of Buckshot's 15 other California locations. Presently they order 900 units of the Q9900 every 6 weeks.

Each store fills weekly orders through its Sony Distributor for items like TV's, DVD Players, cameras, and of course, cell phones, in addition to many other items. Orders for cell phones must be made in increments of 100 units. The distributor takes only one order per week, but Buckshot is not obligated to order every item every week. That order is then shipped 2 days later to that individual Buckshot Electronics location by truck.

Buckshot's Central Procurement is looking to save money by investigating order sizes and subsequent order frequency. You are being asked to create a recommendation for order size and time between orders for the Q9900 based on the numbers for this San Francisco location. Answer the questions that follow in order to create a detailed report for your supervisor.

Below are some the key figures important in your analysis:

Q9900 Wholesale Price $ 325.00

Q9900 Retail Price $ 399.00

Annual Per Unit Holding Costs are estimated at 35% of the wholesale cost of the Q9900.

Costs associated with each order include: Order Placement Fees (Documentation, Network Support) $ 250.00 Delivery

(Fuel, Driver, Truck, etc.) $ 350.00

Packaging $ 150.00

Receiving (Inspection, Documentation, etc.) $ 150.00

Labor ( 5 hours @ $10.00/hr) Stocking, Misc. $ 50.00

Questions:

According to the information supplied, what would be the annual inventory cost if they used the calculated EOQ? Also, separately identify the annual holding cost (AHC) and annual ordering cost (AOC).

16. If they could order the EOQ instead of 900, how much would this one store stand to save annually?

17. Why is this not possible for this company to use the calculated EOQ as their order size?

PROPER ORDER SIZE The store must decide how often they want to order. â¢ Remember, the weekly demand is 150 units. â¢ If they order weekly, the store will require at minimum 200 units per week. â¢ If they order every other week, the store will require at minimum 300 units to get to the next ordering period. (150 units per week, 2 weeks.)

18. If they order every 3 weeks, what will be the minimum required order size? Remember, you must abide by the Sony Distributorâs ordering rules.

19. Assume they sell exactly 150 units each week during the three-week period. Based on the appropriate answer to the previous question, how many extra units will they have left at the end of each three-week period?

20. Based on the ordering scenario where orders are placed every 3 weeks, over a 52-week year, how much extra inventory will this store have accumulated? (Take your answer to #19, divide by 3, and then multiply by 52)

21. If they instead order every 2 weeks what will be the minimum required order size? Remember, you must abide by the Sony Distributorâs ordering rules.

22. Assume they sell exactly 150 units per week. Based on the appropriate answer to the previous question, how many extra units will they have left at the end of the 2-week period?

23. Based on the weekly ordering scenario, over a 52-week year, how much extra inventory will this store have accumulated? (Take your answer to #22, divide by 2, and then multiply by 52)

24. Realistically, which of the following options is most attractive? An attractive option is one where the order size is close or equal to the EOQ, abides by the distributorâs ordering rules, and minimizes the amount of unnecessary inventory. (We will call this Q*)

According to the appropriate recommendation you provided in #24, what would be the Total Annual Inventory cost? Also, separately identify, the annual holding cost (AHC) and annual ordering cost (AOC).

25. Using the Q*, what is the annual holding cost (AHC)? (Choose the closest answer)

26. Using the Q*, what is the annual ordering cost (AOC)? (Choose the closest answer)

27. What is the total annual cost of inventory, TC? (Q = Q*) (Choose the closest answer)

28. The total annual savings for this one store using our recommendation (Q*) versus the present lot size of 900, would be:

TOTAL SAVINGS ALL STORES

29. Without store-by-store information it is difficult to say how much this would save the corporation. Nonetheless, using only the numbers for this store it can be said that if the numbers for the other 14 stores are similar there is a potential to save a total of aboutâ¦Remember, there are 15 stores, total!

whitehare951

Buckshot Electronics is a chain of electronics superstores that is located throughout California. They have 15 locations concentrated primarily in heavily populated areas. They sell thousands of products made by hundreds of different manufacturers. Buckshot sells everything from phones, cameras, DVD players, and video game consoles to large items like televisions.

Sony is one of their larger suppliers. They offer products in nearly every category Buckshot offers to its customers. In fact, Sony sells multiple cell phone models through Buckshot. One such model is the Q9900.

One of Buckshot's San Francisco stores is forecasted to sell about 7800 units of the Q9900 in the coming year. This forecasted demand is about average in terms of Buckshot's 15 other California locations. Presently they order 900 units of the Q9900 every 6 weeks.

Each store fills weekly orders through its Sony Distributor for items like TV's, DVD Players, cameras, and of course, cell phones, in addition to many other items. Orders for cell phones must be made in increments of 100 units. The distributor takes only one order per week, but Buckshot is not obligated to order every item every week. That order is then shipped 2 days later to that individual Buckshot Electronics location by truck.

Buckshot's Central Procurement is looking to save money by investigating order sizes and subsequent order frequency. You are being asked to create a recommendation for order size and time between orders for the Q9900 based on the numbers for this San Francisco location. Answer the questions that follow in order to create a detailed report for your supervisor.

Below are some the key figures important in your analysis:

Q9900 Wholesale Price $ 325.00

Q9900 Retail Price $ 399.00

Annual Per Unit Holding Costs are estimated at 35% of the wholesale cost of the Q9900.

Costs associated with each order include: Order Placement Fees (Documentation, Network Support) $ 250.00 Delivery

(Fuel, Driver, Truck, etc.) $ 350.00

Packaging $ 150.00

Receiving (Inspection, Documentation, etc.) $ 150.00

Labor ( 5 hours @ $10.00/hr) Stocking, Misc. $ 50.00

Questions:

Using Present Lot Size (Q = 900)

According to the information supplied, what is the present annual inventory cost? (In other words, using their present lot size what is the annual inventory cost?) Also, separately identify, the annual cost of purchasing the inventory, the annual holding cost (AHC) and annual ordering cost (AOC).

7. What is the annual cost to purchase the items? (Q = 900) (Choose the closest answer)

8. What is the annual ordering cost, AOC? (Q = 900) (Choose the closest answer)

9. What is the annual holding cost, AHC? (Q = 900) (Choose the closest answer)

10. What is the total annual cost of inventory, TC? (Q = 900) (Choose the closest answer)

Using the Economic Order Quantity (Q=EOQ)

11. What is the EOQ? (Choose the closest answer)

12. Using the calculated EOQ, how often will orders be placed? All answers are in weeks. (Choose the closest answer)

According to the information supplied, what would be the annual inventory cost if they used the calculated EOQ? Also, separately identify the annual holding cost (AHC) and annual ordering cost (AOC).

13. Using the calculated EOQ, what is the annual holding cost (AHC)? (Choose the closest answer)

14. Using the calculated EOQ, what is the annual ordering cost (AOC)? (Choose the closest answer)

15. What is the total annual cost of inventory, TC? (Q = EOQ) (Choose the closest answer)