Calculations & Review

# Calculations & Review - Calculations: 6 Cans 1 Case Par...

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Calculations: 6 Cans – 1 Case Par Stock Method: It is Monday and today you will order food. You have 6 # 10 cases of tomatoes. The par stock level is 3 cases. What will you order? 18 (par) – 6 (inv): 12 cans or 2 cases Minimum-Maximum Method: It’s Monday and you will order food today. You have 40 #10 cans of tomatoes. The minimum level is 10 cans, the maximum level is 60 cans. Will you order today? Assuming you use 15 cans per wee, when will you order next and how much? No, you won’t order today. Inv: 40 Min: 10 Max: 60 Week 1: 40 Week 2: 25 Week 3: 10 (Order) 60 (max) – 10 (min): 50 Cans (8-9 Cases) Periodic Method: It’s Monday and your ordering foos. You will need 3 cases of tomatoes. You have 8 #10 cans in inventory. Assuming an ending inventory of 6 cans, what will you order? 18 Cans (need) – 8 Cans (Inv):10 Cans + 6 Cans (Ending Inv):16 Cans or 3 Cases Amt Req-Inv + Desired Ending Inv: Amt to Order Productive and Total Labor Costs 1) Increase in Productive and Total Labor Costs- Caused by Productive Costs Reason: Overtime 2) Increase in per Meals Value Reason: Decrease in meals w/ same labor costs- Didn’t serve enough meals 3) Increase in Total Costs Reason: Sick Time Labor Measures: Labor Cost Percentage: Labor Costs Divided by Sales X 100 Ex: \$400,000/\$1,000,000 X 100: 40%

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Labor Cost per Meal: Labor Costs Divided by Meals Ex: \$400,000/200,000: \$2.00 Meals Served Per Labor Hour: Meals Served Divided by Labor Hours Ex: 23,160/ 6,480: 3.6 Full Time Equivalents: Labor Hours (week) Divided by 40
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## This note was uploaded on 09/11/2008 for the course NFS 375 taught by Professor English during the Spring '08 term at Rhode Island.

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Calculations & Review - Calculations: 6 Cans 1 Case Par...

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