Answer:
Order quantity = 478units
Reorder point = 420 per week
Explanation:
Given
Item cost =$8
Standard deviation of weekly demand = 20 per week
Order cost(C) = $207
Lead time = 3 weeks
Annual holding cost (H) = 24% of item cost
Service probability = 99%
Annual demand(D) = 27,400
Average demand = 548 per week
Order quantity = sqrt[(2 × D × C) ÷ H]
Order quantity = sqrt[(2 × 27400 × 207) ÷ (0.24 × 207)]
sqrt[ 11343600 ÷ 49.68]
= 477.84
Order quantity = 478 units
Reorder Point = Lead time × daily usage
21 × 20 = 420
Answer:
Option (b) is correct.
Explanation:
Given that,
Initial price of good A = $50
Initial quantity demanded of good A = 500 units
New price of good A = $70
New quantity demanded of good A = 400 units
Average quantity demanded:
= (New + Initial) ÷ 2
= (400 + 500) ÷ 2
= 450 units
Change in quantity demanded:
= New - Initial
= 400 units - 500 units
= -100 units
Average price level:
= (New + Initial) ÷ 2
= (70 + 50) ÷ 2
= $60
Change in price level:
= New - Initial
= $70 - $50
= $20
Therefore, the price elasticity of demand for good A is as follows:
=
=
=
= -0.67
Total revenue before price increase:
= quantity demanded of good A × price of good A
= 500 units × $50
= $25,000
Total revenue after price increase:
= quantity demanded of good A × price of good A
= 400 units × $70
= $28,000
Therefore, there is an increase in total revenue with increase in the price level.
In
this question, this is an example of immediate corrective action.
<span>Immediate
corrective action is having a solution to the problem right away. This shows
that the manager provides action on the spot in the situation/problem. This
type of corrective action lacks sustainability and the duration of the solution
is not think through.</span>
Do it yourself this gets you no where im sorry