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Vladimir79 [104]
1 year ago
11

Suppose that the manager of a company has estimated the probability of a super-event sometime during the next five years that wi

ll disrupt all suppliers as 5%, and the probability of a unique-event that would disrupt one of them sometime during the next five years to be 10%. Supplier management costs during this period are $30,000 per supplier. The financial cost incurred if all suppliers are disrupted at the same time is estimated to be $2,000,000. Assume that up to five nearly identical suppliers are available. How many suppliers should the manager use?
Business
1 answer:
Inessa [10]1 year ago
5 0

Based on the financial cost incurred if supply is disrupted and the probability that this happens, the number of suppliers the manager should use is Two (2) suppliers.

<h3>How many suppliers should be used?</h3>

If 3 suppliers are used, the probability of disruption would be:

= Probability of super event + (1 - Probability of super event) x Probability of unique event^ number of suppliers

= 5% + (1 - 5%) x 10%³

= 0.145

The payoff would be:

= 2 million x 0.145 + 30,000

= $191,900

With two suppliers:
= 2 million x (5% + (1 - 5%) x 10%²) + 30,000

= $169,000

With one supplier :

= 2 million x (5% + (1 - 5%) x 10%) + 30,000

= $320,000

The lowest cost is with 2 suppliers so this should be chosen.

Find out more on probability of disruption at brainly.com/question/16625463.

#SPJ1

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Workco must have the following number of workers available during the next three months: month 1, 20; month 2, 16; month 3, 25.
GaryK [48]

Answer:

Total least possibe cost in three months is $4.800 + $2.800 + $4.000 = $11.600

Explanation:

Let us assume that Workco does not have the option to have less number of workers than 20, 16 & 25 in the first, second and third months respectively.

Month 1 : Since there are zero workers at the start, the cost of First month can easily be calculated as cost of hiring 20 workers and salary of 20 workers i.e (20*100)+(20*140) = $4800

Month 2 : Since number of workers required is less than month 1, workco has the option of firing maximum of 4 workers to bring down number of workers to 16. The decision of whether to fire the workers depend on 2 factors :

a) Cost of firing + Cost of hiring - If we see, cost of firing + hiring is ($50 + $100) = $150 which is greater than the salary of worker of $140/month

b) Number of workers required in 3rd Month - It is important to note that the number of workers needed in 3rd month is the highest i.e more than the 1st month also which effectively means that we will have to rehire all the workers fired in month two and then hire 5 more workers (Difference between number of workers in 1st and 3rd month).

Since cost of hiring + firing is more than the salary, it makes sense to not fire any worker in month 2.

Considering the above points, cost in month two is 20*140 = $2800

Month 3 : Nom of workers at the end of month two is 20 and requirement is 25. So Workco will have to hire 5 more workers costing him (5*100)=$500 and then pay salary to 25 workers (25*140)= $3500 taking the total cost in month 3 to $500 + $3500 = $4000

So, total least possibe cost in three months is $4800 + $2800 + $4000 = $11600

7 0
3 years ago
Comfort chair company manufacturers a standard recliner. During February, the firm's Assembly Department started production of 7
bonufazy [111]

Answer:

1) total equivalent units:

materials = 73,000

conversion = 81,500

2) costs assigned to ending WIP:

materials = $23,013.70

conversion = $27,288.32

Explanation:

beginning WIP 78,000 + 10,000 - 73,000 = 15,000

materials = 100% (0 added during the period)

conversion = 30% (70% added during the period, 10,500 EU)

units started 73,000

units finished 78,000

units started and finished = 63,000

ending WIP 10,000

materials = 100%

conversion = 80%, 8,000 EU

Beginning WIP

Materials $24,000

Conversion $35,000

Costs added during the period:

Materials $168,000

Conversion $278,000

total equivalent units:

materials = 73,000

conversion = 10,500 + 63,000 + 8,000 = 81,500

cost per EU:

Materials = $168,000  / 73,000 = $2.30137

Conversion = $278,000 / 81,500 = $3.41104

costs assigned to ending WIP:

materials = 10,000 x $2.30137 = $23,013.70

conversion = 8,000 x $3.41104 = $27,288.32

5 0
3 years ago
What is the meaning of accounting.
DiKsa [7]
The action or process of keeping financial accounts is what accounting means
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3 years ago
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gladu [14]

Explanation:

I disagree with this argument, it can be said that the secondary market is equally or more important than the primary market, due to the fact that it is the secondary markets that determine what will be the prices that the companies that issue bonds will sell in the primary market.

Secondary markets can also be considered to be responsible for making securities easier to sell in the primary market due to their greater liquidity.

4 0
3 years ago
Blossom Company purchased equipment for $303,200 on October 1, 2020. It is estimated that the equipment will have a useful life
givi [52]

Answer:

Answer A  =  $9,000  

Answer B  =  $6,400  

Answer C   =  $7,632  

Answer D   =  $54,000  

Answer E   =  $71,063

Explanation:

[ find attachments for complete solutions]

Note: Complete question is attached to the attachment section

5 0
3 years ago
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