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Lubov Fominskaja [6]
3 years ago
8

Ye’ Olde Barrel Shop sells oak barrels to a local winery. The Master Cooper would like to reduce her oak lumber inventory by d

etermining the optimal number of oak boards to order. The annual demand averages 55,000 boards and the order cost is $21.00 per order. Holding cost is estimated to be 40%. The purchase cost of each board is $14.00. The standard deviation of daily demand is 5 boards. The standard deviation of lead time is 3.0 days. Assume 268 days in the year and an average lead time of 7 days.
What is the EOQ?

If a service level of 98% is desired during the reorder interval, what is the reorder point? Remember you cannot order partial units. To avoid rounding errors, round to the nearest integer in the LAST step.
Business
1 answer:
mihalych1998 [28]3 years ago
7 0

Answer:

The EOQ is 642

The reorder point is 2,699

Explanation:

In order to calculate the EOQ we would have to calculate the following formila:

EOQ=√2DS/H

According to the given data we have the following:

D = 55,000

S = 21

H=40%*purchase cost

H=0.4*14 = 5.6

Therefore, EOQ=√(2*55,000*21)/5.6

EOQ=642

To calculate the reorder point If a service level of 98% is desired during the reorder interval, we would have to use the following formula:

reorder point=dL+z√σ∧2dL+σ∧2Ld∧2

reorder point=(7*205.22)+√(2.05*√(5∧2*7)+(3∧2*205.22∧2)

reorder point=2,699

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abruzzese [7]

Answer:

The 4Ps are Product, Pricing, Promotion, Place.

Explanation:

Thinking about it carefully, one would note that there is really nothing to contrast between the value approach which is Creating, Communicating, Delivering and Exchanging Value.

Let's make the comparisons:

  • Products and Services are Created. It's impossible to have a product or service that is not created.

The inherent quality of a Utility or Product or Service is that they are value which is Created. So in describing the marketing approach, one can use both interchangeably.

  • Pricing vs Exchanging Value

Again there is a parallel here. Price is the value you have put on your product or service. Without price, it's difficult to exchange value. Again in the marketing process/approach, it's difficult to separate the two. In both approaches, pricing and Exchanging Value as steps in the marketing approach can be used interchangeably.

  • Communicating vs Promotion

This is also another parallel. Promotion is simply another way to communicate the value of your product. Both are really not different.

  • Delivering Value vs Place

Place under the 4 Ps approach speaks to the location where the product is delivered. Again it's clear to see that both cannot be separated.

In conclusion, assuming all factors are the same and held constant between two companies A and B, if company A follows the 4Ps approach and company B follows the Value approach, they are most likely to arrive at the same results.

Cheers!

5 0
3 years ago
If the absolute value of the own price elasticity of demand is greater than 1, then demand is said to be:
OLEGan [10]

Answer:

A. elastic.

Explanation:

Elasticity of demand measures the responsiveness of quantity demanded to changes in price.

Demand is elastic when a change in price leads to a change in quantity demanded. The coefficient of elasticity for elastic demand is usually greater than one.

Demand is inelastic when a change in price has no effect on quantity demanded.

The absolute value of the coefficient of elasticity for inelastic demand is usually less than 1.

Demand is unitary when a change in price leads to an equal proportional change in quantity demanded.

The absolute value of the coefficient of elasticity for unitary demand is usually equal to one .

I hope my answer helps you.

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B. when you successfully fill a market need, you can make money.

C. The Internet is a way to distribute just about anything.

5 0
2 years ago
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Select the correct answer.
irga5000 [103]
$60, because 4 percent of 300 is 12, and 12*5 years is $60 earned through interest.

The answer is 60.
5 0
3 years ago
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According to empirical research, in countries where stockholders' rights are strong, firms issue ____ stock than in countries wh
gavmur [86]

According to empirical research, in countries where stockholders' rights are strong, firms issue <u>More </u>stock than in countries where stockholders' rights are weak. Researchers conclude that strong stockholders' rights <u>reduce</u> moral hazard in stock markets.

<u>Explanation</u>

A <u>Moral hazard</u> is said to have occurred when one party (i.e insured Party) increases its exposure to risk  ,because some other party bears the cost of those Risk.It reflects the tendency of a person to take more risk as the consequence of the risk taken has to be beard by some other party

<u>The moral hazard problem is </u><u>less </u><u> severe in bond markets than in stock markets. In addition, moral hazard arises in bond markets when firms issue bonds with high default risk.</u>

<u />

So it is appropriate to say that , in countries where stockholders' rights are strong, firms issue <u>More </u>stock than in countries where stockholders' rights are weak. Researchers conclude that strong stockholders' rights <u>reduce</u> moral hazard in stock markets.

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