"In the supplier search stage of the B2B buying process, _____ selling plays a major role in providing helpful information to th
2 answers:
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Answer:
Best reorder size = 216
Reorder point = 35
Explanation:
Required:
Using the above information, find the best order size and the reorder point.
To find the best order size, EOQ, use the formula:
Best reorder size is 216 mufflers
To find the reorder point, use the formula:
R = d' L + z
Where d' = average daily demand
L = lead time in days
z = number of standard deviation from a specified probability
= standard deviation of usage in lead time
Daily demand, d'=
12 mufflers
Since lead time is 2 working days, standard deviation of lead time
Therefore,
R = d' L + z
= (12 * 2) + (1.28 * 8.48)
= 24 + 10.9
= 34.9
Approximately 35
Reorder point is = 35 mufflers
Answer:
d. decrease in the quantity of milk demanded.
Explanation:
The law of demand states that there is an inverse relationship between price and quantity demanded. An increase in price will result in a decrease in price and vice versa.
So in this case an increase in the price of milk will result in a decrease in quantity of milk demanded.
This is illustrated in the attached diagram.
