Answer:
- Economic order quantity= 1406 units
- Safety Stock= 630 units
- Reorder Point= 14130 units
Explanation:
Given Demand D= 78,000units/year
Ordering cost S = $38.00/order
Holding cost H = $3.00unit/year
Average lead time = 9 weeks
Standard deviation of weekly demand = 120 units
a) Economic order quantity:
EOQ = \sqrt{(2*D*S)/H}
EOQ = \sqrt{(2*78000*38)/3}
1405.7 = <u>1406 Units</u>
b)<u>
Safety Stock:</u>
Weekly demand = 78000/52 =1500 units
Standard deviation of weekly demand = 120 units
Lead time is 9 weeks
Using the normsinv() in excel the Z value for the desired 96% service level is 1.75
Safety stock = z\sigma _{d}\sqrt{L}
= 1.75*120*\sqrt{9}
= 630 units
Reorder point = average lead time demand + safety stock
= lead time * weekly demand + saftey stock
= 9*1500 + 630
= 13500 + 630
Reorder point = 14130
Walmart noticed that the packaging in some of their products only led to waste. Based from this observation, Walmart established a new policy requiring its toy suppliers to reduce the packaging of their products by one square-inch. Just from this reduction alone, Walmart's waste from packaging alone decreased by 3,500 tons.
Answer:
The number of new clients will increase by
12/3 = 4
Therefore, the number of new clients will increase by 4.
Explanation:
In getting new client, Sam takes 5hours, while Terasa takes 3hours.
In preparing food, Sam takes 10hours while Teresa takes 12hours.
It can be seen that Sam has absolute advantage and comparative advantage in preparation of food, while Tesesa has absolute advantage and comparative advantage in getting new client.
Sam with the comparative advantage in food preparation will take over preparing food for one more event by taking the necessary time away from getting more clients, and Teresa will use the freed-up time from not preparing food for one event to get more clients.
Teresa will free up 12hours she used in the preparation of food.
Since she use 3hours to get new client, She will get
12/3, which equals 4 number of clients
Many companies moved their operations from new england and the midwest to locations in the south because: the South had less expensive site factors than northern regions.
<h3>Change of operation location from midwest to south</h3>
The major reason why most companies tend to moved their operation to south was to maximize profit.
Compare to midwest, the site factors such as rew material, labor and land were more cheaper in the south.
This companies change their operation location because they want to reduce cost as their aims and objective is to generate or maximize profit.
Inconclusion the South had less expensive site factors than northern regions.
Learn more about Change of operation location from midwest to south here:brainly.com/question/503796
