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nexus9112 [7]
3 years ago
13

Consider a product with a daily demand of 400 units, a setup cost per production run of $100. Monthly holding cost are 15%. Unit

cost is $55.75. The company has an annual production rate of 292,000 units. The firm operates and experiences demand 365 days per year.
a. What is the production quantity?

b. What is the maximum inventory level that the company is capable of having on hand?

c. What is the cost of managing the inventory?

d. What is the number of setups?

e. What is the total cost, including the unit cost?
Business
1 answer:
pychu [463]3 years ago
8 0

Answer:

a. 2643

b. 1321

c. 5524.77

d. 55.25

e. $8,156,074.321

Explanation:

Data provided in the question:

Production = 292,000

Daily demand, d = 400

Annual demand, D = 400 × 365 = 146,000

Production rate, P = 292000 ÷ 365 =800

set-up cost, Cs = $100

Holding cost, Ch = $55.75 × 15% = $8.3625

Now,

a) Economic production quantity, EPQ = \sqrt{\frac{2\times D\times Cs}{Ch}\times(\frac{p}{(p-d)})}

Or

= \sqrt{\frac{2\times 146,000\times 100}{8.3625}\times(\frac{800}{(800-400)})}

= 2642.64 ≈ 2643

b. Maximum inventory level that the company is capable of having on hand, I_{max}

= EPQ × [ 1 - (d ÷ p) ]

= 2642.64  × [ 1 - (400 ÷ 800) ]

= 1321.32 ≈  1321

c. Cost of managing the inventory

= Ch\times(\frac{I_{max}}{2})

= 8.3625 × [ 1321.32 ÷ 2 ]

= 5524.77

d. Number of setups

= [ Annual demand ] ÷ EPQ

= 146,000 ÷ 2642.64

= 55.25

e. Total cost including the unit cost

= Setup cost + Holding cost + Unit cost

= ( [ 146000 ÷ 2642.64 ] × 100 ) + ( [ 2642.64 ÷ 2 ] × 8.3625 ) + ( 146000× 55.75 )

= $8,156,074.321

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Answer:

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Explanation:

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Stock Z is trading at $50 today. In one year, the value will go either up to $62.50 or down to $40. A call option on Z with exac
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Answer:

0.33

Explanation:

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Cd = 0

Delta = (7.50 – 0)/(62.50 – 40)

= 0.33

5 0
3 years ago
edna kropp's gross income for a year included salary, $12,400; commission, $27,750; intrerest, $440. Her adjustment to income we
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In this case, you would add Edna's salary, commission, and earned interest.

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6 0
3 years ago
Calculate Payroll An employee earns $44 per hour and 1.5 times that rate for all hours in excess of 40 hours per week. Assume th
Marrrta [24]

Answer: $1750

Explanation:

Given Data

Earnings = $44/ hr

Overtime Earnings = 1.5 times Of $44

= $66

Hours worked during the week = 55 hrs

Social security tax rate = 6.0%

Medicare tax rate = 1.5%

Federal income tax = $633

Therefore:

Gross pay = Normal pay + overtime pay

Normal pay

= $44 * 40 hrs

= $1760

Overtime pay

= $66 * 15 hrs

= $990

Gross pay = $1760 + $990

= $1750

Social security tax

= 0.06 * $2750

= $165

Medicare tax

= 0.015 * $2750

= $41.25

Total tax

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= $839.25

Net pay

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= $1910.75

6 0
3 years ago
McDonald's serves McRice Burger in Malaysia, McOZ Burger in Australia, Kiwi Burger in New Zealand, McHuevo Burger in Uruguay and
devlian [24]

The question is incomplete:

McDonald's serves McRice Burger in Malaysia, McOZ Burger in Australia, Kiwi Burger in New Zealand, McHuevo Burger in Uruguay and McSamurai Burger in Thailand. These menu variations are examples of a:

a. A combination of global and local marketing mix elements

b. a selection of menu items that can be sold eventually in U.S. markets

c. A replacement of standard menu names with fancy names

d. a deviation from successful marketing practices

e. a reflection of failure of US menu items in those countries

Answer:

a. A combination of global and local marketing mix elements

Explanation:

The answer is that these menu variations are examples of a combination of global and local marketing mix elements  because the company tries to position its products on a global scale but also adjusts its strategies locally to adapt the placement and distribution to the specific characteristics of each country.

The other options are not right because McDonalds is adjusting its offer in its market to be able to establish its position in that market and not to be able to sell the items in US markets or to replace standard menu names. Also, this is the result of analyzing how to better position in a new market and not a failure of US menu items in those countries.

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