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S_A_V [24]
3 years ago
12

Galaxy Co. distributes wireless routers to Internet service providers. Galaxy procures each router for $75 from its supplier and

sells each router for $125. Monthly demand for the router is a normal random variable with a mean of 100 units and a standard deviation of 20 units. At the beginning of each month, Galaxy orders enough routers from its supplier to bring the inventory level up to 100 routers. If the monthly demand is less than 100, Galaxy pays $15 per router that remains in inventory at the end of the month. If the monthly demand exceeds 100, Galaxy sells only the 100 routers in stock. Galaxy assigns a shortage cost of $30 for each unit of demand that is unsatisfied to represent a loss-of-goodwill among its customers. Management would like to use a simulation model to analyze this situation.
a. What is the average monthly profit resulting from its policy of stocking 100 routers at the beginning of each month?
b. What percentage of total demand is satisfied?

Business
1 answer:
swat323 years ago
7 0

Answer:

Simulation results:

- the average monthly profit resulting from its policy of stocking 100 routers at the beginning of each month is $4237.

- percentage of total demand is satisfied: 92%.

Explanation:

We have to consider three factors to calculate the profit:

  1. Sales. Every unit sold adds (125-75)=$50 to the profit. We have to consider the condition that the maximum amount of units that can be sold is 100 units.
  2. The remains cost. If the monthly demand is under 100 units, the profit is reduced by $15 per each remaining unit.
  3. The shortage cost. For each unit demanded that exceeds the 100 units, the profit is reduced by $30.

The equation can be expressed as:

Profit=50*Max(Q;100)-15*Max(100-Q;0)-30*Max(Q-100;0)

A simulation with 10,000 trials is done, and the average monthly profit calculated for this policy is $4237.

The demand was calculated with the Excel function INT(NORMINV(RAND(),100,20)), to mimic a normal distribution with mean 100 and standard deviation 20.

b) The satisified demand is calculated for each trial as the minimum value between Q (quantity demanded) and 100, as if Q is bigger than 100, only 100 units of the demand are satisfied.

The percentage of total demand satisfied is:

\%Satisfied=\dfrac{Q_{satisf}}{Q}=\dfrac{918759}{997005}=0.9215=92\%

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Which is most true of an annual rate of 4% compounded quarterly? A) It is equivalent to 4.4% paid annually. B) It is equivalent
Artemon [7]

Answer:

D) It is equivalent to 4.06% paid annually

Explanation:

Since it is not talking about annuity and simple compound interest, therefore assuming investment value = $100 then interest will be as follows:

Interest for each quarter = \frac{4}{100} \times \frac{3}{12} = 1%

But this 1% will be paid on the compounded value

Interest at end of Quarter 1 = $100 X 1% = $1

Compounded value at end of Quarter 1 = $100 + $1 = $101

Interest at end of Quarter 2 = $101 X 1% = $1.01

Compounded value at end of Quarter 2 = $101 + $1.01 = $102.01

Interest at end of Quarter 3 = $102.01 X 1% = $1.0201

Compounded value at end of Quarter 3 = $102.01 + $1.0201 = $103.0301

Interest at end of Quarter 4 = $103.0301 X 1% = $1.030301

Compounded value at end of Quarter 4 = $103.0301 + $1.030301 = $104.060401

Now net return annually = $4.060401/$100 = 4.06%

Final Answer

D) It is equivalent to 4.06% paid annually

6 0
3 years ago
ABC Inc. hires you as its Ethics Officer, and the CEO of ABC Inc wants you to help ABC Inc become ESG compliant. She asks you to
ASHA 777 [7]

Answer:

The definition of the problem is listed throughout the section below on explanations.

Explanation:

ABC Inc employs ABC Inc as an internal auditor as well as CEO into becoming compliant with ESG. She requests you should consider 2 recommendations each for ABC Inc's ESG research on Climate, Economic, and Governance. Why your advice will ensure ABC Inc operates differently against Enron.

<u>Environment:</u>

  • Through its operational activities, ABC should incorporate renewable energy. Solar panels could be used for generating power in organizations where appropriate.
  • ABC will devote 5% of all its sales to research for environmentally friendly energy resources to significantly reduce its reliance on coal.

<u>Social:</u>

  • ABC could perhaps recognize the perspective including its investors and therefore should share the required info.
  • When the CEO is unaware of the corporation's misconduct as well as some informant points something out to herself, therefore that individual or organization must be tended to or respected.

<u>Governance:</u>

  • ABC ought to be more open concerning its activities. If it's the founder or the worker. Stockholders ought to learn what the internal operations of their business are.
  • Boards must be supervised closely and they should include separate, representative members. Their pay should not have been so strong that incongruity is prevented in conferences.

<u>As contrasted with Enron's. Enron did not follow up on such above compliance issues.</u>

  • We were vague when it came to disclosing their liabilities off the income statement. Shareholders were unfamiliar with the firm's operations.
  • Whistle-blower or anybody who referred out such a program flaw was embarrassed and disciplined.

ABC Inc may obey these guidelines above to have been consistent with ESG.

4 0
3 years ago
Universal Containers conduct evaluations of their sales reps using a custom object consisting of numerical scores and executive
iris [78.8K]

Answer:

You could use a private sharing system or application that grants access through custom settings. Also, It should display page layouts and it should have field-level security.

Explanation:

If the company wants to ensure that a few staff members and reps can view the rep's evaluation records, thus the private sharing application should grant access through custom settings. The page layouts should be specific by accounts, numerical scores, and executive comments. These page layouts should use field-level security to restrict reps to view the executive comment field on their review.

6 0
3 years ago
Which of the following statements about the consumers’ responses to rising gasoline prices is correct?
vovangra [49]

Answer:

c.About half of the long-run reduction in quantity demanded arises because people drive less and about half arises because they switch to more fuel-efficient cars.

Explanation:

In a long run, The demand is more elastic than in a short run, this is because the consumers have both more time and number of substitutes to switch to. So almost 50% of long-run decrease in quantity demanded is due to less driving by people, while rest 50% is due to people switching to more fuel-efficient cars.

7 0
3 years ago
1. What are Red Bull's greatest strengths and risks as more companies (like Coca-Cola, Pepsi, and Monster) enter the energy drin
Misha Larkins [42]

Answer:

<em>Strengths</em>

  1. RedBull is a well-established brand in the Energy Drink sub-sector.
  2. It has been in existence since 1987 making it a 33-year-old company. That's a lot of experience doing the same thing.
  3. Given its years of experience, consumers have a lot of confidence in its brand. This means it has strong brand equity.
  4. As of 2019, RedBull still has the highest market share of any energy drink in the world with a record 7.5 billion cans sold

<em>Risks</em>

  1. The challenge is this, Coca-cola is a much older company with about 128 years behind it. It was established in 1892.
  2. Coca-cola equally has a very strong brand equity
  3. In the carbonated drinks sub-sector, it has dominated the sector since 2004. It's market share is estimated at 42.5%.
  4. It has about 500 brands compared to Redbull which has only one brand.
  5. In Pepsi was created in 1893. Just one year younger than Coca-cola. It currently has about 24.9% of the soda market. Within the cola segment alone, it has about 100 flavours.
  6. Monster energy as a strong entrant into the energy drink market is only 18 years old and it already has 49 different drinks with about 14% market share worldwide.

Suffice it to say that if Red Bull does not concieve of a critical strategy to maintain market dominance, it may continue to bleed it's market share.

2. Red Bull should do more than traditional advertising.

There is no reason why it can go into the Soda space. There are countries where the big players still exert a huge dominance. Mexico, for instance, consumes the more coca-cola than anywhere else in the world.

Red Bull in addition to keeping it's market share through aggressive advertising, can enter into the soda market, targeting these regions where coca-cola and other players seem to have a pseudo monopoly.

Red Bull can also look at creating more flavours depending on the psychographics of the target market it is looking at.

Bull Stratos

Red Bull Stratos is the official name for the project involving Mr Baumgartner's mission. Mr Baumgartner's project involved a record breaking jump for the ages from the edge of space which cost about USD 30 million. It is on record that this is nothing like what Red Bull have ever done before and it did so at a fraction of it's annual sports marketing which is estimated at about USD 300 Million.

To answer the question about its effectiveness, its definitely yes.

Over 8 million people saw the jump which had the Red Bull logo/ branding conspicuously displayed. It was dubbed "the most successful Public Relations campaign of year 2012."

The line will always be dictated by the metrics which show returns on marketing budget invested.

Any strategy that currently works to enhance the brand of Red Bull or at least keep its dominance over the energy drink market, must be explored.

Cheers!

6 0
3 years ago
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