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Practical Questions Q 1. Samer Corporation operates a retail store featuring wristwatehes. It maintains an EOQ decision model to make inventory decisions. Currently, it is considering inventory decisions for its Samer wristwatches product line, which is a very popular product line. Data for 2020 Each watch costs RT $75, and sells for $200. The carrying cost per jersey per year $15. The purchasing lead time is 12 days. RT is open 365 days a year. Required: 1. Calculate the EOQ for the Samer product line. 2. Calculate the number of orders that will be placed each year. 3. Calculate the reorder point. Q 2. The Janet Company manufactures men's neckwear at its A 1 plant. Janet is considering implementing a JT production system. The following are the estimated costs and benefits of JT production: a. Annual additional tooling costs would be $3000,000. b. Average inventory would decline by 70% from the current level of $1,800,000. c. Insurance, space, materials-handling and setup costs, which currently total $270,000 annually, would decline by 30%. d. The emphasis on quality inherent in JTT production would reduce rework costs by 20%. Janet currently incurs $150,000 in annual rework costs. e. Improved product quality under JIT production would enable Janet to raise the price of its product by $5 per unit. Janet sells 80,000 units each year. Janet's required rate of return on inventory investment is 20% per year. Required: 1. Calculate the net benefit or cost to Janet if it adopts JIT production at the A1 plant. . What nonfinancial and qualitative factors should Janet consider when making the decisio to adopt JT production

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