Answer:
160
Explanation:
Reorder point is the inventory level at which new order are placed to prevent a down time due to stock out and and holding cost are also at the minimal level .
<u>Workings</u>
Annual demand = 8000
Ordering cost = $50
Holding cost = $20
Operating days = 250
Lead time =5 days
Re order point = Average daily usage * Average lead time
Average daily usage = 8000/250 = 32
Reorder point = 32*5 =160
Answer:
Cancel his cable TV subscription and go out to dinner three fewer times each month with friends
Answer:
<u>Opportunities</u>
Faster and more information
When information is bountiful and disseminated speedily, investors are more confident that the financial system is strong and will be more likely to invest.
Liquidity,
Investors love being able to change their assets to physical money as soon as possible. If this is hard in a country, they will not invest.
Change in government restrictions
When Government restrictions that limit opportunities are lifted, investors come in larger numbers to take advantage of these new opportunities.
<u>Risks </u>
Financial services outside of regulation
Investors would prefer that the law is able to protect their assets and so will shun opportunities outside regulation.
Hot money
If there is too much Hot money going in and out of the economy, investors will be worried that too much money could leave the country at the slightest change in interest rates.
Information gap
Information should be widely available. If it is usually concealed from international partners, this can damage portfolios.
Interrelated international capital market
Independent Capital markets are able to withstand problems going on in other capital markets. When a nation's capital market is too interrelated with others this is risky.
Reducing risk reduction
A nation acting to reduce measures that reduce risk is a red flag. Investors want the least risky asset for a certain amount of return.
The model shows that households earn money when <u>Firms </u>purchase <u>Factors </u>in factor markets.
<h3>Interaction between the Household and a Firm </h3>
- Households buy goods from firms thereby passing income to firms.
- Firms buy labor from households.
Households therefore earn an income when firms decide to go to the factor market and buy a factor such as labor from households.
In conclusions, households and firms are interconnected.
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