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frosja888 [35]
4 years ago
15

Annual demand for an item is 11,000 units with the cost per unit at $250. The holding rate is 10% and the order cost is $14.00 p

er order. The standard deviation of daily demand is 3 units. Assume 260 days in the year and a lead-time of 2 days. If a service level of 97% is desired during the reorder interval, what is the reorder point? (Note: Due to rounding and your exact choice of z, your answer may be a few units off the choices given.)
Business
1 answer:
frutty [35]4 years ago
5 0

Answer:

93 units

Explanation:

Annual demand for an item = 11,000 units

cost per unit = $250

holding rate = 10%

Order cost = $14.00 per order

No. of days in a year = 260

Lead-time = 2 days

Average\ daily\ demand=\frac{Annual\ demand\ for\ an\ item}{No.\ of\ days\ in\ a\ year}

Average\ daily\ demand=\frac{11,000}{260}

                                              = 42.3 units

For a service level of 97%, the value of z is 1.881

Therefore,

Reorder point:

= Average daily demand × Lead time + Standard deviation of the daily demand × no. of standard deviation corresponding to service level probability × \sqrt{Lead\ time}

= (42.3 × 2) + (3 × 1.88 × \sqrt{2})

= 92.57

= 93 units

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Answer and Explanation:

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2   On Sep 30

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Rogers Manufacturing's overhead at year-end was underapplied by $5,800, a small amount given the firm's size. The year-end journ
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Answer:

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XXXX          Cost of goods sold                            $5,800

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A volume-cycled ventilator is in the control mode and the I/E ratio alarm is sounding. Which control adjustment would correct th
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Option "D" is the correct answer for the following.

Increase the flow rate.

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The quantity the ventilator provides differs with adjustments in airway pressure, lung performance and ventilation system integrity.

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Answer:

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Cycloplegia on the other hand is the loss of accommodation of the pupil and it is caused by the paralysis of the cilliary muscle of the eye. This paralysis causes the eyes to lose its ability to focus on things nearby.

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I hope this helps.

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<h3>What are total overhead costs?</h3>

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The calculation of the total overhead costs is actual overhead costs less the budgeted overhead costs.

Hence, the aforementioned statement regarding total overhead costs holds true.

Learn more about total overhead costs here:

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