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3 years ago

When there is probabilistic demand in a multiperiod model, the inventory level will not decrease smoothly and can fall below.

Business

1 answer:

jok3333 [9.3K]3 years ago

4 0

Answer:

b. True

Explanation:

The probablistic inventory model include demand and supply variation, it is based on the assumption that the average demand for inventory is constant over period of time. Two method are used based on frequency of order for procuring stocks:

Single period inventory system.
Multi period inventory system.

Single period inventory system are applicable for single used product or perishable goods. Here cost are analysed to avoid loss of ordering extra unit of inventory.

Multi period inventory system are applicable for orders or items which can be ordered multi time during production cycle.

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Janelle Heinke, the owner of Ha'Peppas!, is considering a new oven in which to bake the firm's signature dish, vegetarian pizza.

NikAS [45]

Answer:

a) Oven A = 1,667; Oven B = 2,353 pizzas.

b) Oven A

c) Oven A

d) 13,334 pizzas

Explanation:

Since nothing was mentioned regarding her time availability, the capacity of each oven will not be taken into account.

The income equation for ovens A and B, respectively, are:

$A=(14-2)x-20,000\\B=(14-1.25)x-30,000$

Where 'x' is the number of pizzas sold.

a) The break-even occurs when income is zero:

$A=0=(14-2)x-20,000\\x_A=1,666.66\\B=(14-1.25)x-30,000\\x_B=2,352.94$

Rounding up to the next whole pizza, the break-even for oven A is 1,667 pizzas and for oven B it is 2,353 pizzas.

b) For x = 9,000:

$A=(14-2)*9,000-20,000\\A=\$88,000\\B=(14-1.25)*9,000-30,000\\B=\$84,750$

Income is greater with oven A, so Janelle should use oven A.

c) For x = 12,000

$A=(14-2)*12,000-20,000\\A=\$124,000\\B=(14-1.25)*12,000-30,000\\B=\$123,000$

Income is greater with oven A, so Janelle should use oven A.

d) She should switch ovens at the value for 'x' that causes B to be greater than A:

$A$

Rounding up to the next whole pizza, she should switch ovens at a volume of 13,334 pizzas.

7 0

4 years ago

If you were using the discounted cash flow method to determine the appropriate value of a security, you would want to purchase t

saul85 [17]

Answer: The current market price is below the PV

Explanation:

The discounted cash flow method is when the time value of money is being used to value a project, security, company, or an asset.

When the discounted cash flow method is used to determine the appropriate value of a security, it is vital to buy the security when the current market price is below the present value.

8 0

4 years ago

How much does it cost to get your ears pierced at walmart?

bazaltina [42]

Answer: 10-35 USD

Explanation:

5 0

3 years ago

Read 2 more answers

If the population growth rate is 2 percent, real GDP per person will double in 7 years if real GDP grows by ______ percent per

Valentin [98]

Answer:

With a population growth of 2%, the GDP has to grow 12.6% per year in order to real GDP per person double in 7 years.

Explanation:

It is necessary to state the formula to calculate the GDP growth per person in 7 years and some assumptions. Defining as base of population and GDP the number 100 (aleatory picked) we can write our equation: GDP per person in year 7 = 100(1+x)^7/100(1+0.02)^7=2 In this equation X is the fixed percentage of GDP growth. By iteration process, we get that X=12.6%

6 0

4 years ago

Plummer Industries purchased a machine for $43,800 and is depreciating it with the straight-line method over a life of 8 years,

tensa zangetsu [6.8K]

Answer:

$2,580

Explanation:

Depreciation = (Cost - Residual Value)/ Useful life

Yearly depreciation = ($43-800 - $3000)/8 = $5100

At the end of Year 5, total depreciation would be = $5100 X 5 = $25,500

Net book value at the end of year 5 = $43,800 - $25,500 = $18,300

Year 6, the extra ordinary repair that extended the useful life would be capitalized. Book value = $18,300 + $7,500 = $25,800

As 5 years have been expended, the remaining useful life would be 15-5 = 10 years

Depreciation expense year 6 = $25,800/10 = $2,580

7 0

3 years ago