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trapecia [35]
3 years ago
15

​Cranium, Inc., purchases term papers from an overseas supplier under a continuous review system. The average demand for a popul

ar mode is 300 units a day with a standard deviation of 30 units a day. It costs​ $60 to process each order and there is a five−day lead−time. The holding cost for a paper is​ $0.25 per year and the company policy is to maintain a​ 98% service level. Cranium operates 200 days per year.​
What is the reorder point R to satisfy a​ 98% cycleminus−service​level?

A. greater than​ 1,700 units

B. greater than​ 1,600 units but less than or equal to​ 1,700 units

C. greater than​ 1,500 units but less than or equal to​ 1,600 units

D. less than or equal to​ 1,500 units
Business
1 answer:
WITCHER [35]3 years ago
3 0

Answer:

In the following scenario:

​Cranium, Inc., purchases term papers from an overseas supplier under a continuous review system. The average demand for a popular mode is 300 units a day with a standard deviation of 30 units a day. It costs​ $60 to process each order and there is a five−day lead−time. The holding cost for a paper is​ $0.25 per year and the company policy is to maintain a​ 98% service level. Cranium operates 200 days per year.​

The reorder point R to satisfy a​ 98% cycleminus−service​level:

C. greater than​ 1,500 units but less than or equal to​ 1,600 units

Explanation:

The reorder point is the level of inventory that unleashes the action to refill the stock we have stored. In other words, is the minimum number of units a company has of the same item in storage, and when the stock falls to that number the trigger is actioned and the company needs to get the units of the item. The formula to obtain it is (Average daily usage x Average lead time in days ) + Stock. or (300 x 5) +  stock. The stock has to be minimal because the demand is high in those 5 days. So it has t be lower than 100 units.

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3 years ago
If Tommy started work at 7 a.m. and left at 2:45p.m., how many hours should
IRISSAK [1]

Answer:

7 hours (if the question asked us how many hours he spent without adding the value of the minutes).

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3 years ago
Read 2 more answers
The nominal value of anything is its price expressed in​ ________, and the real value of anything is its value expressed in​ ___
Alexandra [31]

Answer:

D. ​today's dollars; purchasing power

The nominal value of anything is it's current price or the dollar amount someone is paying for it. For eg if the price of a kg of rice is $3, its nominal value is also $3. The real value is expressed in terms of purchasing power which means that the amount of goods and services that you can purchase from a particular amount of money today compared to a base year in the past. So for example if the base year is 5 years ago and the price of a kg of rice was $1.5, the real value of $3 would be 2 kgs of rice, where as currently if the price of a kg of rice is $3 then the real value of $3 is 1 kg of rice. As purchasing power decreases the real value of money decreases.

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