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frosja888 [35]
3 years ago
5

In a continuous review inventory system, the lead time for door knobs is 5 weeks. The standard deviation of demand during the le

ad time is 85 units. The desired cycle-service level is 99 percent. The supplier of door knobs streamlined its operations and (a) reducing the 99 percent cycle-service level?
Business
1 answer:
taurus [48]3 years ago
7 0

Answer:

245 units reduction.

Explanation:

What is safety stocks?

Safety stocks can be defined as the extra stock that is been kept by business organizations in order to minimize their risk. One can not successfully say that an amount of a material will be need at a particular period of time by the consumers and this is the reason many companies or industries or business organizations do keep safety stocks in their inventory.

So, let us proceed in to solving the question.

The parameters given in the question are; lead time = 5 weeks, standard deviation of demand during the lead time = 85 units, desired cycle-service level = 99%.

We can calculate the value of units for the Reduction in safety stocks by using the formula below;

Reduction in safety stocks=safety stocks - revised safety stocks.

Reduction in safety stocks = 443 - (2.33 × 85 units × 1 week lead time)

Reduction in safety stocks = (443 - 198) units = 245 units.

Note that 2.33 is from the 99% service level) and the 443 is from the 5 weeks lead time which can be Calculated using; (maximum daily usage × maximum lead time in days) - (average daily usage) × average lead time in days.

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Answer / Explanation:

First, we need to understand what variance analysis is. Variance analysis is the qualitative and quantitative measure of the difference between actual financial value and the budgeted financial value.

This helps us to properly monitor our rate of spending against our profit or loss margin. it also assist in proper fund management.

Now talking about how the company will utilize variance analysis, the company will utilize variance analysis in the aspect of fixed over head spending. In the sense that it will be used to measure manpower productivity against overhead spending. This will help us to proper affirm if the rate of manpower productivity equal fixed overhead spending. In the case where fixed overhead spending is more than man hour productivity ratio, then the company will be running at a loss. This is basically a way of measuring productivity performance of man power and also assets.

6 0
4 years ago
Jason Allen is 30 years and wants to retire when he is 65. So far he has saved (1) $6,960 in an IRA account in which his money i
grandymaker [24]

Answer:

It will make annual deposits for $ 4,056.202

Explanation:

His goal is a future value of 1,000,000 in 35 years.

we will deduct from this the future value of his other investment:

<u>IRA</u>

Principal \: (1+ r)^{time} = Amount

Principal 6,960.00

time      35.00

rate                0.08300

6960 \: (1+ 0.083)^{35} = Amount

Amount 113,397.95

<u>Market account</u>

Principal \: (1+ r)^{time} = Amount

Principal 4,310.00

time     35.00

rate               0.05250

4310 \: (1+ 0.0525)^{35} = Amount

Amount 25,837.53

<u>Proceeds required from the fund:</u>

1,000,000 - 113,397.95 - 25,837.53 =  860,764.52

Now we calculate the PMT:

PV \div \frac{1-(1+r)^{-time} }{rate} = C\\

PV  $860,764.52

time      34 years

(we must notice it will beging this investment next year, so at 31 years old)

rate                0.0934

860764.52 \div \frac{1-(1+0.0934)^{-34} }{0.0934} = C\\

C  $ 4,056.202

5 0
3 years ago
If the price level is 100 for 1996 and the price level is 103.3 in 1998, a nominal GDP in 1998 of $8,800 billion would mean that
ella [17]

Answer: b. $8,518.9 billion.

Explanation:

Nominal GDP is calculated with current prices which means that the effects of inflation are present.

Real GDP removes this effect by basing the GDP calculation on the prices of a previous period:

Real GDP = Nominal GDP * 100/ Price level

= 8,800 * 100/ 103.3

= $8,518.877

= $8,518.9 billion

4 0
3 years ago
A(n) ___________ distribution strategy distributes a product through only a preferred group of retailers in a given area. intens
hjlf

The answer is selective distribution strategy. This type of distribution strategy focuses more on the products that are distributed are to be given to only specific areas and are only selected by the company or the distributor in which is in lined with the statement given above.

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3 years ago
Select the correct statement regarding the contribution margin ratio. Multiple Choice The contribution margin ratio equals contr
Art [367]

Answer:

The contribution margin ratio can be calculated using either total amounts or per unit amounts.

Explanation:

Contribution margin ratio = \frac{Contribution\:per\:unit}{Selling\:price\:per\:unit}

This can even be done by \frac{Total\:Contribution\:}{Total\:Sales}

This will calculate contribution as a percentage of Sales, with this margin ratio we get break even sales value, and not the units.

Whenever there is an increase in variable cost it decreases the contribution.

Therefore, correct statement is

The contribution margin ratio can be calculated using either total amounts or per unit amounts.

8 0
3 years ago
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