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choli [55]
3 years ago
13

Suppose that in Problem 13 a Type 2 service objective of 95 percent is substituted for the stock-out cost of$ 12.80. Find the re

sulting values of Q and R. Also, what is the imputed cost of shortage for this case?

Business
1 answer:
evablogger [386]3 years ago
8 0

Answer:

(Q, R) = (1555, 1400)

shortage imputed = $0.388

Explanation:

Lot size-reorder point system is one of the multi period models. This system is denoted by decision variables (Q, R). This multi period model is implemented when there is uncertain demand in inventory control.

nevertheless, in the simple EOQ model, demand is known and fixed. But when the demand is random, these lot size-reorder point (Q, R) systems allow random demand.

There are two decision variables in a (Q, R) system:

Order quantity, Q and

Reorder point, R

Additional steps are attached as files

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Answer:

b. small percentage changes in the price will lead to much larger percentage changes in the quantity demanded.

Explanation:

Price elasticity of demand is a measure of how responsive is quantity demanded to change in price. Its formula is given by:

E_{D} = \frac{dQ}{Q}{\frac{P}{dP} =

= % Change in Quantity Demanded / % Change in Price

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Answer:

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Explanation:

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3 years ago
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So this type of culture is not very successful in the long run. Because everybody works for his or her advantage. For an organization to be successful everyone has to work together keeping in mind the benefit of other employees also.

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