Answer:
It will take 18.041 years to triple the investment.
Explanation:
We need to solve for delta:
![\delta = \sqrt[11.5530]{2} -1](https://tex.z-dn.net/?f=%5Cdelta%20%3D%20%5Csqrt%5B11.5530%5D%7B2%7D%20-1)
delta = 0.06183353
now solve for this rate compounding twice per year to triple the investment:
we use logarithmics properties and solve for n:
[tex]2 \times n= \frac{log3}{log(1+06183353/2)
n = 18.04051743
It will take 18.041 years to triple the investment.
Answer:
The correct answer is C. The producer's price index in that area.
Explanation:
The producer price index (PPI) is an indicator of the evolution of producer sales prices, corresponding to the first marketing or distribution channel of goods traded in the economy. The difference with the consumer price index (CPI) is explained because a good can be marketed or distributed by different intermediaries that will modify the sales price until it reaches the final consumer.
All of these fall under the Bottleneck items of strategic sourcing.
Bottleneck explains situations when there is a high amount of risk and the availability of the item is low. There are not a lot of supplies to pick from but the item is in demand, this leads to procurement problems. Companies use strategic sourcing to try and red the cost of an item while keeping or improving the quality of it.
Answer:
a. 464 beans
b. $464
Explanation:
a. The computation of the economic order quantity is shown below:
= 
where,
Annual demand = 200 days × 77 pounds = 15,400
And, all other items values would remain the same
Now put these values to the above formula
So, the value would equal to
= 
= 464 beans
The average inventory would equal to
= Economic order quantity ÷ 2
= 464 units ÷ 2
= 232 units
b. Holding cost = average inventory × carrying cost per unit
= 232 units × $2
= $464
Answer:
Savings in additional cost as result of making $154,350.00
Explanation:
The relevant costs for this decision would be the variable cost of production and the external cost of purchase.
Unit variable cost of internal production
= 10.80 + 9.80 + 4.10 = $24.7
Variable cost of making ( $24.7 × 49,000) = 1,210,300.00
Variable cost of Buying ($27.85 × 49,000) = <u>1,364,650.00</u>
Savings in additional cost as result of making <u> 154,350.00</u>
Note that the fixed cost is irrelevant for the purpose of the make or buy decision . This is so because they would be incurred either way. Hence, they are not to be considered for the analysis
