The answer is C. stocks =)
Answer:
The EOQ is 642
The reorder point is 2,699
Explanation:
In order to calculate the EOQ we would have to calculate the following formila:
EOQ=√2DS/H
According to the given data we have the following:
D = 55,000
S = 21
H=40%*purchase cost
H=0.4*14 = 5.6
Therefore, EOQ=√(2*55,000*21)/5.6
EOQ=642
To calculate the reorder point If a service level of 98% is desired during the reorder interval, we would have to use the following formula:
reorder point=dL+z√σ∧2dL+σ∧2Ld∧2
reorder point=(7*205.22)+√(2.05*√(5∧2*7)+(3∧2*205.22∧2)
reorder point=2,699
She will have to work 6 hours.
Answer:
E
Explanation:
Future value of an annuity is a method used to calculate the value of a recurring payments in the future.It involves the principal payment , a specific timeline and also interest or discount rate.
Assuming the rate of discount or interest do not change , it can help to accurately predict the value of a future payment or saving.
The interest or discount rate is factored into the present value of the annuity in order to derive the future value.
The correct term is likely an EPO (exclusive provider organization)
