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yaroslaw [1]
3 years ago
13

An auto parts shop carries an oil filter for trucks. The annual demand for the oil filter is roughly 1200 units. The ordering co

st per order for the auto parts shop is $80; the holding cost of carrying 1 unit is $1.2 per year. The shop has 360 working days per year. The lead time is usually 12 working days. Determine the economic order quantity.
Business
1 answer:
earnstyle [38]3 years ago
6 0

Answer:

The answer is the economic order quantity is 400 units.

Explanation:

For this question, we apply the economic order quantity (EOQ) formula developed by Ford W. Harris in 1913, to find the answer. The formula is shown as below:

EOQ = \sqrt{2DS/H}

in which: EOQ: Economic order quantity; D: Annual Demand in units; S: Cost per order; H: Annual holding cost per unit.

So by substituting the information we are given in the question, we have: D = 1,200 units; S = $80 and H = $1.2. Thus:

EOQ = \sqrt{2 * 1,200 * 80/1.2} = 400 units.

So, the economic order quantity is 400 units.

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Increasing ,increasing
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Ming is a manager for a large foodservice company. She has the authority to determine whether or not the company should expand i
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Answer:

Strategic

Explanation:

If Ming is a manager for a large company and has the authority to determine whether or not the company should expand into new regions and/or expand the company's product line, Then the level of management that Ming represents is Strategic Management

Strategic management involves setting objectives, <u>analyzing the competitive environment</u>, analyzing the internal organization, evaluating strategies, and ensuring that management rolls out the strategies across the organization.

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3 years ago
After reading the article, select the statements that are correct. Choose one or more: A. The cost-of-living adjustment for 2020
Mama L [17]

Answer:

  • B. The former program trustee argues that the current inflation measure overcompensates seniors since it ignores the substitution effect.
  • C. According to advocates for seniors, the 2020 COLA is not enough to compensate for rising healthcare costs.
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Explanation:

The article is, ''<em>Social Security checks to rise modestly amid push to expand benefits '' </em>by<em> Associated Press. </em>

Blahous is a former program trustee who believes that the current inflation adjustment rate at which Social security is increasing is overcompensating seniors because it does not take into account that seniors could be switching to buying cheaper products which is the Substitution effect.  

Advocates and the seniors themselves have complained that the 2020 COLA is not enough to meet their current needs especially given the rising cost of healthcare.

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MacDonald​ Products, Inc., of​ Clarkson, New​ York, has the option of ​(a) proceeding immediately with production of a new​ top-
Romashka-Z-Leto [24]

Answer:

The EMV for option a is ​$5,679,100

The EMV for option b is ​$5,719,200

Therefore, option b has the highest expected monetary value.

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The EMV of the project is the Expected Money Value of the Project.

This value is given by the sum of each expected earning/cost multiplied by each probability.

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a) proceeding immediately with production of a new​ top-of-the-line stereo TV that has just completed prototype testing.

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23% probability of selling 70,000 units at $610 each.

So

EMV = 0.77*E_{1} + 0.23*E_{2}

E_{1} = 100,000*610 = 6,100,000

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​(b) having the value analysis team complete a study.

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EMV = 0.74*E_{1} + 0.26*E_{2} - 120,000

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EMV = 0.74*E_{1} + 0.26*E_{2} - 120,000 = 0.74*6,120,000 + 0.26*5,040,000 - 120,000 = 5,719,200

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Answer:

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