1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
baherus [9]
3 years ago
8

A manufacturer is contemplating a switch from buying to producing a certain item. Setup cost would be the same as ordering cost.

The production rate would be about double the usage rate. (Can you please show me how you did it)
1) Compared to the EOQ, the economic run size would be

A) the same

B) approx 20% larger

C) approx 40% larger

D) 20% smaller

E) approx 40% smaller

2. Compared to the EOQ, the miximum inventory would be

A) approx 70% higher

B) approx 30% higher

C) the same

D) approx 30% lower

E) approx 70% lower
Business
1 answer:
Flauer [41]3 years ago
4 0

Answer

D) compared to the EOQ, the maximum inventory would be approx 30% lower.

Explanation

EOQ = √(2*Co*D/Cc)

EPQ= √ (2*Co*D/(Cc*(1-x)))

x=D/P

D = demand rate

P =production rate

Co=ordering cost

Cc=holding cost

1) The production rate would be about double the usage rate.

hence, P = 2D

x=D/2D=0.5

EPQ= √ (2*Co*D/((1-0.5)*Cc))

EPQ= √ (2*Co*D/0.5Cc)

EPQ=√ (1/0.5)*EOQ

EPQ=√ (2)*EOQ

EPQ=1.41*EOQ

Hence, EPQ is around 40% larger than EOQ.

Ans.: c) EPQ will be approximately 40% larger than the EOQ.

2) Compared to the EOQ, the maximum inventory would be

maximum inventory = Q

EPQ = 1.41 EOQ

EPQ = 1.41*Q

Q=EPQ/1.41

Q=0.71 EPQ

Hence, compared to EOQ, maximum inventory in EPQ is only 70% of that in EOQ model.

You might be interested in
Consider the following data that gives the quantity produced and unit price for three different goods across two different years
elena-14-01-66 [18.8K]

Answer:

$5,400

Explanation:

The computation of real gross domestic product is shown below:-

Goods     Price base year   Quantity current year   Expenditure

                    2012                      2013

A                    $2.00                  600                             $1,200

                                                                               ($2.00 × 600)

B                    $4.00                  900                             $3,600

                                                                               ($4.00 × 900)

C                    $2.00                  300                              $600

                                                                               ($2.00 × 300)

Real Gross domestic product                                     $5,400

Therefore, Real GDP is the sum value of all the final goods and services generated by an economy in a given year, which accounts for inflation. The estimate is based on the prices of a selected base year.

3 0
3 years ago
$2000 a year is deposited into an annuity for a child from its birth until it is 18 years old. The rate of interest is at 7%. Wh
Vitek1552 [10]
I think the annuity will be worth about 41,146 in 18 years, I hope this helped :)
6 0
3 years ago
Imagine a capacity constrained, single resource process with multiple employees working at the single resource. If the number of
77julia77 [94]

Answer:

It will reduce

Explanation:

Imagine a capacity constrained, single resource process with multiple employees working at the single resource. If the number of employees increases then the cycle time for the process will reduce.

<em>Cycle time = Average time between completion of units.</em>

If we take an example of a manufacturing facility, which is producing 1000 units of product per 40 hour week. The average throughput rate is 10 unit per 0.04 hours, which is one unit every 2.4 minutes. Therefore the cycle time is 2.4 minutes on average.

If we increase the number of workers, the circle time will definitely reduce because more workers will finish a particular work in less time

8 0
4 years ago
The income statement for Electronic Wonders reports net sales of $91,628 million and cost of goods sold of $69,148 million. An e
irakobra [83]

Answer:

1.  Cash received from customers = $89,908

2.  Cash paid to suppliers = $71,972

Explanation:

                                                                             Amount in millions

Net sales                                                         $91,628

Less: Increase in accounts receivable                  $(1,720)

Cash received from customers                          $89,908

                                                                           Amount in millions

Cost of Goods sold                                       $69,148

Add: Increase in inventory                               $870

Add: Decrease in accounts payable                $ 1,954

Cash paid to suppliers                                        $ 71,972

7 0
3 years ago
A__ is an investment option that is open only to private, accredited
Scrat [10]

Answer:

hedge fundfundfundfundfund

Explanation:

3 0
3 years ago
Other questions:
  • Select the best alternative for the following questions:
    10·2 answers
  • Regina has made the same sales presentation twice a day for almost a month. At first, the presentation seemed to flow nicely but
    11·1 answer
  • Good supervisors may act as a ________ channel between employees and management.
    10·1 answer
  • A lack of trust between two parties engaged in international trade is exacerbated by the narrowing distance between the two part
    13·1 answer
  • Assume that the fair values of the investee's net assets approximated the recorded book values of the investee's net assets, exc
    12·1 answer
  • LPM Ltd. uses units produced as its measure of activity. During August, the company budgeted for 46,700 units of output, but act
    12·1 answer
  • MC Qu. 116 CWN Company uses a job order costing... CWN Company uses a job order costing system and last period incurred $90,000
    9·1 answer
  • a. Simulation can be used to analyze large and complex real-world situations that cannot be solved by using conventional quantit
    14·1 answer
  • In respect to a balance sheet, a stock split will: Multiple Choice not affect the total value of any of the equity accounts. inc
    10·1 answer
  • The OYB Company is performing an annual evaluation of two of its suppliers: X Company and the Y Company. You have collected the
    14·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!