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vampirchik [111]
3 years ago
9

ABC Retail stocks and sells its own brand of personal computers. It costs the firm $600 each time it places an order with a manu

facturer for computers. The cost of carrying one computer in inventory for one year is $225. The store manager estimates the total annual demand for computers will be 2,000 units with a constant demand rate throughout the year. ABCs policy is never to have stockout of the store brand TV. The store is open for business seven days per week from 9 AM to 6 PM. Determine the time between orders TBO (in working days)
Business
1 answer:
Mariana [72]3 years ago
3 0

Answer:

18 days

Explanation:

first we must determine the economic order quantity:

EOQ = √[(2 x S x D) / H]

  • S = order cost = $600
  • D = annual demand = 2,000
  • H = holding cost = $225

EOQ = √[(2 x 600 x 2,000) / 225] = 103.28 units ≈ 103 units

total number of orders = 2,000 / 103 = 19.4175

Time between orders = working days per year / total number of orders = 365 / 19.4175 = 18.7975 days

since the company's policy is to never run out of stock, then we should round down the time between orders to 18 days. If we round up to 19 days (which is much closer actually), the risk of an stock out exists.

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Answer:

b

Explanation:

Another definition:

It is the purchase price of an asset + the costs of operating the asset

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Apple, known for creativity and innovation, keeps its new innovations consistent with previous product lines to maintain long-te
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Answer: Relational

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Answer:

1. The main priority for workers at a manufacturing facility is to maximize efficiency.

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Ergonomic. Because this structure is designed to increase health and safety.

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Ergonomic.The same goes about ensuring safety and health.

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Mental capacity. Since the boundaries and constraints of mental health are measured.

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3 years ago
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