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HACTEHA [7]
2 years ago
5

The continuing cycle of erratic demand causing forecasts to include safety stock which in turn magnify supplier forecasts and ca

use production planning problems is known as______________.
Business
1 answer:
balandron [24]2 years ago
6 0

Answer:

The Bullwhip Effect

Explanation:

Bullwhip effect is a phenomenon that occurs in an organisation's channel of distribution due to swings or erratic demands for products by customers. This erratic nature of demands will usually lead to forecasting inefficiencies especially in meeting the demands through the supply chain.

A sudden increase in demand could lead to production planning problems because there might not be enough inventory of materials on ground to meet the demand. Also, a sudden decrease in demand can bring the challenge of excess inventory of materials which may not be needed for production for a while.

One of the measures taken to manage this erratic nature of demands is to ensure that whatever the forecasts for demands is, safety stock must be included to the forecast level of demand so as to ensure that production planning is adequate and the demands are met as well.

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An investor will choose between Asset Q with an expected return of 6.5% and a standard deviation of 5.5%, Asset U with an expect
MakcuM [25]

Answer:

Asset U

Explanation:

Reward-to-volatility ratio for Asset Q = Expected return / standard deviation

Reward-to-volatility ratio for Asset Q = 6.5% / 5.5%

Reward-to-volatility ratio for Asset Q = 1.1818

Reward-to-volatility ratio for Asset U = Expected return / standard deviation

Reward-to-volatility ratio for Asset U = 8.8% / 5.5%

Reward-to-volatility ratio for Asset U = 1.6

Reward-to-volatility ratio for Asset B = Expected return / standard deviation

Reward-to-volatility ratio for Asset B = 8.8% / 6.5%

Reward-to-volatility ratio for Asset B = 1.3538

The  investor should prefer Asset U because its has the highest reward to volatility ratio among the three options.

8 0
3 years ago
Nunavet Ocean Cruises sold an issue of 12-year ​$1,000 par bonds to build new ships. The bonds pay​ 4.85% interest, semi-annuall
frez [133]

Answer:

bond market value $660

Explanation:

We need to calculate the present value of the maturity and the cuopon payment using the effective rate of 9.7%

First we do the annuity:

C \times \frac{1-(1+r)^{-time} }{rate} = PV\\

C  24.25  (1,000 face value x 4.85 bond rate / 2 )

time  24.00 (12 year 2 payment a year)

rate  0.04850 (current rate divide by 2 to get it annually)

24.25 \times \frac{1-(1+0.0485)^{-24} }{0.0485} = PV\\

PV $339.55

Then present value of the maturity

\frac{Maturity}{(1 + rate)^{time} } = PV  

Maturity   1,000.00 the face value of the bond

time   24.00

rate   0.04850

\frac{1000}{(1 + 0.0485)^{24} } = PV  

PV   320.89

Finally we add them together:

PV coupon payment $339.5545

PV maturity  $320.8910

Total $660.4455

rounding to nearest dollar

bond market value $660

7 0
3 years ago
Swimmers Co. operates a set of water parks with leisure facilities for families in Aqualandia. During January 20X1, Swimmers acq
ElenaW [278]

The Swimmers Co.'s Boat's value in use (net present value) is Eur 321,221.

Data and Calculations:

Pre-tax discount rate = 5% p.a., excluding inflation

Inflation rate = 2% p.a.

Inflated discount rate = 7% (5% + 2%)

Salvage value = Eur 20,000

<u>Projected cash inflows:</u>

Year           Cash Inflows    Discount Factor     Discounted Cash flows

20X4         Eur 72,000              0.935                     $67,320

20X5        Eur 69,000               0.873                      60,237

20X6        Eur 64,000               0.816                      52,224

20X7        Eur 59,000               0.763                      45,017

20X8       Eur 52,000               0.666                      34,632

20X9       Eur 45,000               0.623                      28,035

20X10     Eur 38,000               0.582                        22,116

20X10     Eur 20,000              0.582                         11,640

Total discounted cash flows                         Eur 321,221

Thus, the Swimmers Co. will calculate the boat's value in use as Eur 321,221, taking into account all the discounted cash inflows.

Learn more: brainly.com/question/17185385

6 0
2 years ago
Which of the following statements is true of the new product development process? Question 8 options: 1) Commercialization is th
diamong [38]

Answer: 4) Under the business analysis stage, if the new product satisfies the company's objectives, the product then moves to the product development stage.

Explanation:

The Business Analysis stage of the New Product Development Process is a more in-depth analysis of the product to find out the viability of the product in the market and what it means for the firm.

Here the big questions are asked such as;

  • The Cost of the product to produce
  • If adequate profit will be generated
  • Projected market demand
  • Existing competitors etc

Once these questions have been answered and other analysis made and the company is satisfied, the product can then move to the Product Development Stage.

7 0
2 years ago
People often use products or services that are _________, to indicate who or where they are in the social hierarchy
Setler79 [48]

Answer:

Status Symbols

Explanation:

According to Oxford dictionary; a status symbol is "a possession that is taken to indicate a person's wealth or high social or professional status."

Hence status Symbols are external displays of the possessors' wealth and social status. These goods can not be possessed by people who do not belong to that social status or profession.

5 0
2 years ago
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