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Grace [21]
2 years ago
10

A company has average demand of 30 units per day. Lead time from the supplier averages seven days. Assume that the combined stan

dard deviation of demand during lead time has been calculated and is equal to 20 units. One unit costs $10 and the inventory carrying cost is 25 percent. 1 standard deviation covers 84.13% 1.04 standard deviations covers 85% 1.28 standard deviations covers 90% 1.65 standard deviations covers 95% 1.96 standard deviations covers 97.5% 2 standard deviations covers 97.72% 2.33 standard deviations covers 99% 3 standard deviations covers 99.86% 6 standard deviations covers 99.99966% What is the reorder point for the company if it decides on a 99 percent service level?
Business
1 answer:
Nataly [62]2 years ago
4 0

Answer:

Re-order quantity = 256.6 or 257 units

Explanation:

We can calculate the reorder point for the company at 99% service level as follows

Solution

The Standard deviation of demand during lead time = sigma

Average daily demand = d

lead time = L

Standard deviation covered 99%  = Z

DATA

Sigma =20 units

d= 30 units per day

L= 7 days

Z= 2.3

Calculation

Reorder quantity = (d x L) + (Z x sigma)

Reorder quantity = (30x7) + (2.33 x 20)

Reorder quantity = 210 + 46.6

Reorder quantity = 256.6 or 257 units

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7 0
1 year ago
You had used an online service to apply for a credit card. As part of the process, you submitted your personal information such
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b. Identity theft

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8 0
3 years ago
Which job is categorized as professional and would most likely earn a salary?
Serggg [28]
If there are any choices please do tell.
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3 0
3 years ago
Read 2 more answers
Job WR53 at NW Fab, Inc. required $200 of direct materials and 10 direct labor hours at $15 per hour. Estimated total overhead f
nadezda [96]

Answer:

The question is not complete, find below complete question:

Job WR53 at NW Fab, Inc. required $200 of direct materials and 10 direct labor hours at $15 per hour. Estimated total overhead for the years was $760,000 and estimated direct labor hours were 20,000. What would be recorded as the cost of job WR53?

A. $200

B. $350

C. $380

D. $730

The correct option is D, $730 as shown below

Explanation:

Overhead absorption rate is given total overhead /direct labor hours

Overhead absorption rate=$760000/20000

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Hence job WR53 would require $380($38*10 hrs) in overhead cost

The total cost of the job is given as follows:

Direct materials                  $200

Direct labor cost($15*10)   $150

Overhead on the job        <u> $380</u>

Total cost                            <u>$730</u>  

The job WR53 would cost $730

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2 years ago
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Suppose the number of people employed (E) is currently 100 and the number unemployed (U) is 10 and the labor force is fixed at 1
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Answer:

9.09% and 5.263%

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These both should be expressed in a percentage forms

4 0
3 years ago
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