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Craig+-+Kota+Fibres+and+Changes+in+Inventory+Ordering+Patterns

Craig+-+Kota+Fibres+and+Changes+in+Inventory+Ordering+Patterns

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Kota Fibres and Changes to Inventory Ordering Patterns: Starting Point: Assume that we are at the start of December and that sales are as given each month. Ko where the amount ordered is equal to 55% of the sales forecasted in two months. Purchases and endin December January Febr Sales 100 (Dec) 100 (Jan) 200 SOM Inventory (for Current Month Production) 55 (Dec) 55 (Jan) 110 SOM Inventory (for Next Month Production) 55 (Jan) 110 (Feb) 110 Purchase (for Month After Next Production) 110 (Feb) 110 (Mar) 220 Usage (Current Month) -55 (Dec) -55 (Jan) -110 Ending Inventory 165 220 330 SOM Stands for Start of Month Kota Fibres may change from ordering two months in advance to only one month in advance. The amou on next month's sales instead of the sales expected in two months. Purchases and ending inventory bal anything in December, since we already have January's inventory, since it would have been ordered in N December January Febr Sales 100 (Dec) 100 (Jan) 200 SOM Inventory (for Current Month Production) 55 (Dec) 55 (Jan) 110 SOM Inventory (for Next Month Production) 55 (Jan) 0 (Feb) 0
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