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nasty-shy [4]
2 years ago
11

A certain company reorders envelopes when it stock drops to 15 boxes, although demand for envelopes during lead time is normally

distributed with a mean of 10 boxes and a standard deviation of 3 boxes. Which of the following is closest to the probability of this company stocking out before a new order of envelopes arrives?
Business
2 answers:
GaryK [48]2 years ago
8 0

Answer:

25%

Explanation:

The reorder point is the inventory management system in which a certain level of inventory is set as a trigger for reordering the stock. The probability to stocking out before the new order of envelopes arises is 25%. The lead time is normally distributed with mean of 10 boxes.

(reorder point - normally distributed mean) / standard deviation

15 boxes - 10 boxes / 3 boxes = 1.67

To calculate probability of stocking out for the company,

1.67 * 15 boxes reorder point = 25%

marissa [1.9K]2 years ago
6 0

Question: The options were not given in the question. here are the options;

a. 50%

b. 75%

c. 5%

d. 95%

e. 25%

Answer:

The correct option is D. 95%

Explanation:

ROP = demand during lead time + (Z * standard deviation of lead time demand)

15 = 10 + (Z * 3)

Z = 1.667

For Z = 1.667, service level is nearly 95%

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<span>Weber would consider this an exercise in power in the social stratification model. The owner has the ability to have others do what he wants them to do. He is able to set goals that can be achieved even with others opposing them.</span>
4 0
3 years ago
An insurer sells a very large number of policies to people with the following loss distribution: $100,000 with probability 0.005
kogti [31]

Answer:

a) $2000

b)  $1,886.7925

C) $2,036.7925

Explanation:

First, the question states to determine the expected claim cost per policy

Expected Claim Cost represents the fund required to be paid by an insurer for a particular contract or a group of contracts as the case maybe. This is usually based on the policy taken.

A) Expected Claim Cost per policy

= (Policy Loss Value A x its probability) + (Policy Loss Value B x its probability) + (Policy Loss Value C x its probability)+(Policy Loss Value D x its probability)+ (Policy Loss Value E x its probability)

= ( (100000 x 0.005 )+ (60000 x 0.010) + (20000 x 0.02) + (10000 x 0.05) + 0 = $2000

Part B: discounted expected claim cost per policy

Since, the sum of $2000 is expected to be paid by the insurer by the end of the year, the interest to be earned based on the rate  (discounting used)

=$2,000 ÷ (1  + 0.06)

= $1,886.7925

Part C:: Determine the Fair Premium

Fair Premium is calculated as follows

The discounted policy claim cost + the Processing Cost per application + The fair profit loading

= $1,886.7925+ $100+50 = $2,036.7925

3 0
3 years ago
A written representation from a client’s management that, among other matters, acknowledges responsibility for the fair presenta
7nadin3 [17]

Answer:

The answer is Chief Executive Officer and and the Chief Financial Officer

Explanation:

As part of the requirements for audit process, the external auditor will obtain from the management a written representation for the financial statements being presented to the external auditor. The management is responsible for the preparation of Financial statement and the external auditor expresses their opinions on it.

To show accountability, The Chief Executive Officer and the Chief Financial Officer both sign on it.

6 0
2 years ago
Portia is a vegetarian and chooses not to eat meat based on moral and ethical rationales. Her employer is hosting a barbeque eve
8090 [49]

Answer:

D. freedom of conscience (limited)

Explanation:

Freedom of conscience consists is having the right to form one's own ethical and moral views, independent of other's beliefs, and also having the right to act in a way that is coherent with those ethical and moral views.

Even if Portia is an employee, and is legally bound to her employer in many ways, she is not obliged to do something that goes against her ethical and moral rationales, whether at the workplace, or a event outside of the office like the barbeque. As a vegetarian, she has the right to be excused from the party, and exercise in that way, her freedom of conscience.

5 0
3 years ago
taxes: a. are unlikely to affect market supply and demand b. are copmulsory payments to governments c. never affect efficiency i
Crank

Answer:

The answer is B.

Explanation:

Taxes are compulsory payment levied by a government of a country. It is not voluntary.

We have direct and indirect tax.

Direct taxes are those taxes that are imposed on individual and company. A company is charged at a rate after its profit is known. An individual earning salary is charged before the salary is collected.

Indirect taxed are those levied on goods and services. These types of taxed are pass on to the consumers in form of price of goods.

Tax is mandatory for everyone. Its a revenue for government

5 0
3 years ago
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