How might different functional areas of an organization have different inventory management objectives? How would you meet management's challenge of balancing inventory? What tools and/or theoretical formulas would you utilize? Explain why. How do you differentiate cycle, safety, pipeline, and speculative inventory? Why do we need to do so? What is inventory carrying cost? Explain the primary components. What is the tradeoff between inventory ordering and carrying cost? What are stock-out costs? How should you calculate the cost?

Joint cost cheyenne, inc. produces three products from a common input. the joint costs for a typical quarter follow: direct materials $45,000 direct labor 55,000 overhead 60,000 the revenues from each product are as follows: product a $75,000 product b 80,000 product c 30,000 management is considering processing product a beyond the split-off point, which would increase the sales value of product a to $116,000. however, to process product a further means that the company must rent some special equipment costing $17,500 per quarter. additional materials and labor also needed would cost $12,650 per quarter. a. what is the gross profit currently being earned by the three products for one quarter? $answer b. what is the effect on quarterly profits if the company decides to process product a further? $answer