What type of inventory control system would you suggest to Jim Reed? Jim Reed is aware that his company inventory must serve its purpose of maximizing the profit. At the present time the approach is to lower the inventory and improving his service levels. The inventory reduction is to attack the methodology in two directions. (1) optimizing inventory levels and view the order fulfillment process (2) changing the way we currently process order fulfillment. A storewide sale of the inventory will eliminate overstock items. The overall goal is to sell inventory at full price, but reduce price is an option. The company advertisement skills have to benefit the immediate sale of the product at all cost. The company must generate cash and if all else fails donation to charitable organization will benefit tax but not help with immediate cash flow because the tax write-off and lower holding costs alone will make it worthwhile. What type of accounts receivable control would you suggest to Jim Reed? In the business meeting Jim Reed and Harold Holmes final outcome is the cash flow is crippling the business with need to reduce the inventory and stabilize the accounts receivable balances. After careful consideration Jim is seeking outsource counseling to help in reducing the inventory without sacrificing customer relationships and maintain good will. “A simple interest-only loan is suggested and secured with a UCC-1 lien, which is made against the value of the accounts receivable of the business. The loan proceeds are distributed to the business owner who invests them into either an annuity contract or life insurance policy. The bank will take additional security with a lien against the annuity or life insurance policy and protect the accounts receivable by effectively “equity stripping” the asset by way of the UCC-1 lien”. (2008, Adkisson) With this financial program it will create significantly more money for the business owner than if nothing were done. This will help the
Stochastic Inventory Control with Carbon Emissions Regulations October 27, 2013 Abstract This study analyzes an inventory control problem of a company in stochastic demand environment under carbon emissions regulations. In particular, a continuous review inventory model is investigated under three regulation policies: carbon cap, carbon tax, and carbon cap-and-trade. We analyze and compare the optimal (Q, R) policies under each carbon emissions regulation policy. Furthermore, the effects…
Inventory Analyst My typical work day as an Inventory Control Analyst at Jabil Circuit inc. consists of the following activities. Creating a “pull” list for part’s from the warehouse: The planning team will create sales orders based on customer demand. Sales orders are then loaded into our Enterprise Resource Management software (SAP), and the production plan is released to Inventory Control team. Based on that production plan I as an inventory analyst will create a “pull” ticket for the material…
accordance with the provisions of the National School Lunch Act and the Child Nutrition Act of 1966. The department maintains three distinct types of inventory at each of its production cafeterias. Purchased food, purchased supplies, and United States Department of Agriculture (USDA) donated foods are each recorded and reported separately in a daily inventory book. Purchased food includes all food items that are purchased from commercial vendors. Purchased supplies include all supplies such as disposable…
Deborah Fitzgerald Thomas Sloan and Spencer Auditing Firm during phase III of Apollo Shoes audit plan, we will focus in two key cycles, which are the following: inventory and warehouse cycle and cash cycle. It is important to understand that are six types of transactions in the inventory and warehouse cycles which are: receive raw materials, store raw materials, process purchase order, and process of goods, store completed goods, and ship completed goods. In addition, it…
AU1 Assignment 3 Question 1 Evaluating the auditors’ procedures for assessing client’s internal control (provide four points): The auditors should apply three phases in evaluating internal control: Understand the internal control Assess preliminary control risk to determine audit approach Perform test of controls when assessing control risk below maximum In addition to using flowcharts, questionnaires, and narratives, the auditors should inspect documents and records, and observe a walk-through…
INTERNAL CONTROL Internal Control Systems The Use of Internal Control Systems by Auditors Transaction Cycles Tests of Control The Evaluation of Internal Control Component Communication on Internal Control Internal Control Systems Why must Auditors understand the Accounting System and Control Environment of an entity? Auditor must understand the accounting system and control environment in order to determine their audit approach. How would you define what Internal Control is? Internal control is the…
PRE-SESSIONAL COURSE: STAGE 5 Management Studies Pathway Final Written Assignment Question Number: Full question 3 Describe the symptoms of poor inventory management. Critically discuss the methods and techniques for improving inventory management, making reference to one of the following sectors: Option selected: c) supermarkets Student Name: Wang Yue Student ID number: 201017067 Group number: Management 14 Group Tutor Sarah Spicer 5th September 2014 Declaration The work contained…
What internal controls issues do you identify? Solution: According to auditing standards and professional conduct the auditor is required that the auditor relay information, in writing, to management and those charged with governance, significant deficiencies and material weaknesses identified in an audit. The following internal control issues were found as regards the audit for Smackey Dog Food, Inc. and thus have to be…
Case Study: Internal Control Systems Rodneisha Clark Liberty University Internal Control Systems While examining both Accountant A and Accountant B opinions about the company’s internal control system, I would have to agree with Accountant B’s philosophy. She feels as though if there were effective system controls in place, there would not have been in discrepancies with the inventory numbers. Accountant A believes that CBU has a good system of internal controls, but if the company had…
a very conventional, antiquated process for inventory management. Most inventory checks are done through a printed form and then handed off to an Inventory Clerk for data entry. This process consumes time and allows room for human error. To enhance the inventory management at Riordan Manufacturing, implementation of a barcode scanning system and Vendor Managed Inventory (VMI) system is recommended. This system will provide full automation of inventory tracking from the receipt of raw materials…