Annual demand for the notebook binders at Duncan's Stationery Shop is 10 comma 200 units. Dana Duncan operates her business 300
1 answer:
Answer:
170
Explanation:
Assuming no safety stock is used, the reorder point (ROP) can be given by:
ROP = lead time x average daily demand.
The lead time is 5 days.
Average daily demand (ADD) is given by:
Therefore, the reorder point is:
This means that Duncan's Stationery Shop should not let inventory fall under 170 binders in order to meet their average daily demand.
You might be interested in
Answer:
Bond Price = $1234.403 rounded off to $1234.40
Explanation:
To calculate the price of the bond today, we will use the formula for the price of the bond. We assume that the interest rate provided is stated in annual terms. As the bond is a semi annual bond, the coupon payment, number of periods and semi annual YTM will be,
Coupon Payment (C) = 1,000 * 0.077 * 6/12 = $38.5
Total periods remaining (n) = [16 - 1] * 2 = 30
The bonds were issued one year ago for 16 years. Thus, remaining years are 15 and semi annual periods are 30
r or YTM = 0.054 * 6/12 = 0.027 or 2.7%
The formula to calculate the price of the bonds today is attached.
Bond Price = 38.5 * [( 1 - (1+0.027)^-30) / 0.027] + 1000 / (1+0.027)^30
Bond Price = $1234.403 rounded off to $1234.40
