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SVEN [57.7K]
3 years ago
8

Sarah's Muffler Shop has one standard muffler that fits a large variety of cars. Sarah wishes to establish a reorder point syste

m to manage inventory of this standard muffler. Annual demand 4,700 mufflers Ordering cost $ 60 per order Standard deviation of daily demand 5 mufflers per working day Service probability 90 % Item cost $ 25 per muffler Lead time 3 working days Annual holding cost 20 % of item value Working days 300 per year Use the above information to determine the best order size and the reorder point: (Use Excel's NORMSINV() function to find the correct critical value for the given α-level. Do not round intermediate calculations. Round "z" value to 2 decimal places and final answer to the nearest whole number.) Best order size mufflers Reorder point mufflers
Business
1 answer:
GarryVolchara [31]3 years ago
4 0

Answer:

Following is the solution for the given problem.

Explanation:

Best order size, EOQ =√2DS/H

EOQ = √2*4700*60/5

EOQ = 336 units.

D = 4700/300 = 15.66.

σ L= √∑σ²

= √3*(5)² = 8.66.

Reorder point, R = D*L+ z σ L

Reorder point, R = 15.66*3 + 1.282*8.66

Reorder point, R = 58 units.

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Monica [59]

The DAW mean dispense after written. Dispense as written refers to the prescriber's instructions regarding authorization for substitutes with generic counterparts or ordering of the specific prescribed drug with "DO NOT SUBSTITUTE" the instructions on the prescription.

A DAW code indicates the prescriber's instructions to the payer for the  generic equivalent substitute or dispense of the specific prescription drug. when the member expressly requests the brand-name drug over the generic version at the pharmacy In both cases, the plan continues to pay the high cost of the brand-name drug so that the member's access to the medication is not disrupted.

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3 0
1 year ago
you make a clay pot for $10 and sell it to a customer for $40. what is your economic surplus associated with the transaction?
Bess [88]

The transaction's surplus in terms of the economy $30

<h3>Which principle states that the next-best choice you must forego in order to have something is its true cost?</h3>

The idea of opportunity cost, which states that the opportunity lost as a result of a decision, determines the true cost of an economic decision, is closely tied to the principle of substitution.

<h3>What is a sunk cost, give an example, and explain why it doesn't matter when deciding what to do in the future?</h3>

Sunk costs are viewed as bygone in economic decision-making and are not taken into account when determining whether to continue an investment project. Spending $5 million to establish a plant that is expected to cost $10 million is an example of a sunk cost.

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3 0
1 year ago
Item32 time remaining 46 minutes 2 seconds 00:46:02 item 32 item 32 time remaining 46 minutes 2 seconds 00:46:02 during a recent
abruzzese [7]

The variable cost is calculated as -

Sales - Variable cost = Contribution Margin

Given, Contribution Margin = 25 %

Variable cost = 1 - Contribution Margin = 1 - 25 % = 75 %

25 % of Sales = Contribution Margin = $ 400,000

Sales = $ 400,000 ÷ 25 %

Sales = $ 1,600,000

Variable costs = 75% of Sales = 75 % × $ 1,600,000 = $ 1,200,000

3 0
3 years ago
Under what elasticity conditions would the following be true? "Increasing the minimum wage will result in a decrease in employme
nydimaria [60]

Answer:

The elasticity of labor is elastic (low elastic).

Explanation:

The given situation or condition, the rise in minimum wage will lead to decrease the employment for the person who earns lower than new minimum wage shows that the labor demand is elastic or elasticity for the labor is low because the increase in the minimum wage lead discourages to the producer to hire unskilled labor. Therefore, employment will decrease with an increase in the minimum wage.

5 0
3 years ago
Bims Corporation uses the weighted-average method in its process costing system. The Assembly Department started the month with
vekshin1

Answer:

59,700 units

Explanation:

The computation of the equivalent units for the conversion cost is shown below:

= Opening work in process units × completion percentage + units started and completed × completion percentage + ending work in process units  × completion percentage

= 4,600 units × 100% + 36,500 units × 100% + 31,000 units × 60%

= 4,600 units + 36,500 units + 18,600 units

= 59,700 units

6 0
3 years ago
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