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Founded almost 20 years ago, supplest medics com has become one of Europos most succesh ful direst mail supplies of neesical hardware and consumables to hospitals, doctors' and dentist' surgeries, clinics, nursing homes and other medical.related organizations. its phyical and online catalogues let just over 4.000 iems, categorized ty broad applications such as tiygiene contumabier and 'wrgeons instruments' Quoting their website. We we the pan- Europran ditrizutors of wholerale medical and sodecty supplies... We aint to carry evepything you might ever need, from nuser' senibs to medical Wts, conwmables for openations, fint aid bits, talefy products, chemicals, fire-fighting equipment, nune and phyiclans' supplech, etc Everything is of affordable prices - and backed by our very superior customer service and support - suppliestmedics is your ideal source for all medical supplies Oeler are normally despatched same-day, wa our European didribution partner, the Brusselt Hub of DHL. You should thene. ecther hove dedined Our average ietentary (itock) cover is fore recelve your complete order wathin one weck, but you can sebout 10 weric, but ... amtatingly. .. we shill run out of crit; request neet day delivery if requied, for a small eatra charge cal temtl in fact, on avertige, we are curently out of flock of You can order cur prineed catalague on the link at the bottom about 5005Us (Fsock Kerping Unitt) at any time Afryou can tying. ifrventory levels had grown faster than ales revenve., QUESTIONS in percentage terms, This was putting a strain on cash flow, 1 Prepare a spreaduheet-based ABC analyusis of usage requiring the company to borrow more cash to fund the rapid growth planned for the next year Invertory holding. rapid growth planned for the next yeat inventory holding: A-items top 201 of usage value taking account of the cost of borrowing, irsurance, and all b-items nest 30% of usage value warehousing overheads. Pierte Lamouche, the Head of Operations, summa. 2 Calculate the inventory weeks for each item, for each rized the situation faced by his department: 'As a matter of Cassification, and for all the items in totat. Does this urgency, we are reviewing our purchasing and imventory man- Sivgest that Pserre Lomouche's estimate of inventory agement syitems! Most of cur exiting re-order Ifveit (ROL) and re-order quantities (hOQ) wete set several years dgo, and 3 If sa, what is your estimate of the overall inventory at have never been recalzulated, Our focus has been on rapid the end of the base year, and how much might that growth through the introduction of new product lines for have increased during theyear? more recently introduced Remi, the noQr were based only \& tosed on the sample, analyse the underlying causes of We ettimate that it peits in, on average 50 eurat to ploce and adminiter every purchase orders since most supplien art '5 Calculate the EOQs for the A-items. still not able to take ordess over the intemet or by EDI. In the 6 What recommendations would you give to the meantime sala of some products have grown fast, whelt company? Table 12.10 Representative sample of 20 catalogue ltems "AII quantities are in sales units (eg item, box, case, pack). 1 Prepare a spreadsheet-based ABC analysis of usage value. Classify as follows: A-items: top 20% of usage value B-items: next 30% of usage value C-items: remaining 50% of usage value 2 Calculate the inventory weeks for each item, for each classification, and for all the items in total. Does this suggest that Pierre Lomouche's estimate of inventory weeks is correct? 3 If so, what is your estimate of the overall inventory at the end of the base year, and how much might that have increased during the year? 4 Based on the sample, analyse the underlying causes of the availability problem described in the text. 5 Calculate the EOQs for the A-items. 6 What recommendations would you give to the company? Founded almost 20 years ago, supplest medics com has become one of Europos most succesh ful direst mail supplies of neesical hardware and consumables to hospitals, doctors' and dentist' surgeries, clinics, nursing homes and other medical.related organizations. its phyical and online catalogues let just over 4.000 iems, categorized ty broad applications such as tiygiene contumabier and 'wrgeons instruments' Quoting their website. We we the pan- Europran ditrizutors of wholerale medical and sodecty supplies... We aint to carry evepything you might ever need, from nuser' senibs to medical Wts, conwmables for openations, fint aid bits, talefy products, chemicals, fire-fighting equipment, nune and phyiclans' supplech, etc Everything is of affordable prices - and backed by our very superior customer service and support - suppliestmedics is your ideal source for all medical supplies Oeler are normally despatched same-day, wa our European didribution partner, the Brusselt Hub of DHL. You should thene. ecther hove dedined Our average ietentary (itock) cover is fore recelve your complete order wathin one weck, but you can sebout 10 weric, but ... amtatingly. .. we shill run out of crit; request neet day delivery if requied, for a small eatra charge cal temtl in fact, on avertige, we are curently out of flock of You can order cur prineed catalague on the link at the bottom about 5005Us (Fsock Kerping Unitt) at any time Afryou can tying. ifrventory levels had grown faster than ales revenve., QUESTIONS in percentage terms, This was putting a strain on cash flow, 1 Prepare a spreaduheet-based ABC analyusis of usage requiring the company to borrow more cash to fund the rapid growth planned for the next year Invertory holding. rapid growth planned for the next yeat inventory holding: A-items top 201 of usage value taking account of the cost of borrowing, irsurance, and all b-items nest 30% of usage value warehousing overheads. Pierte Lamouche, the Head of Operations, summa. 2 Calculate the inventory weeks for each item, for each rized the situation faced by his department: 'As a matter of Cassification, and for all the items in totat. Does this urgency, we are reviewing our purchasing and imventory man- Sivgest that Pserre Lomouche's estimate of inventory agement syitems! Most of cur exiting re-order Ifveit (ROL) and re-order quantities (hOQ) wete set several years dgo, and 3 If sa, what is your estimate of the overall inventory at have never been recalzulated, Our focus has been on rapid the end of the base year, and how much might that growth through the introduction of new product lines for have increased during theyear? more recently introduced Remi, the noQr were based only \& tosed on the sample, analyse the underlying causes of We ettimate that it peits in, on average 50 eurat to ploce and adminiter every purchase orders since most supplien art '5 Calculate the EOQs for the A-items. still not able to take ordess over the intemet or by EDI. In the 6 What recommendations would you give to the meantime sala of some products have grown fast, whelt company? Table 12.10 Representative sample of 20 catalogue ltems "AII quantities are in sales units (eg item, box, case, pack). 1 Prepare a spreadsheet-based ABC analysis of usage value. Classify as follows: A-items: top 20% of usage value B-items: next 30% of usage value C-items: remaining 50% of usage value 2 Calculate the inventory weeks for each item, for each classification, and for all the items in total. Does this suggest that Pierre Lomouche's estimate of inventory weeks is correct? 3 If so, what is your estimate of the overall inventory at the end of the base year, and how much might that have increased during the year? 4 Based on the sample, analyse the underlying causes of the availability problem described in the text. 5 Calculate the EOQs for the A-items. 6 What recommendations would you give to the company

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