1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Serhud [2]
3 years ago
5

Suppose we are a distributor that uses safety stock and a reorder point for inventory management. If we can find a more consiste

nt manufacturer that will maintain the same mean lead times while cutting the variance of the demand during lead time to 1/2 its original value, the new safety stock that we need to carry to achieve the same service level will also drop to 1/2 its original value.
1. True
2. False
Business
1 answer:
Ulleksa [173]3 years ago
6 0

Answer:

The answer is False. By cutting the variance of the demand during lead time to 1/2 its original value while maintaining the same lead times, the new safety stock will also drop to 1/2 its original value.

Explanation:

Safety stock is a form of inventory management that provides an additional unit of an item held as a buffer i order to mitigate risk of running out of stock.

A reorder point provides a buffer of time to restock items when stock is running out. It helps to reduce operational costs and chaos that may arise  such as rush fees owed to suppliers. It makes the use of a warehouse space more efficient.

Suppose we are a distributor that uses safety stock and a reorder point for inventory management. If we can find a more consistent manufacturer that will maintain the same mean lead times while cutting the variance of the demand during lead time to 1/2 its original value, the new safety stock that we need to carry to achieve the same service level will also drop to 1/2 its original value.

You might be interested in
Problem location and definition is the first step toward finding a solution to a marketing problem or launching a research study
Lina20 [59]
Problem location and definition is the first step toward finding a solution to a marketing problem or launching a research study. The sign of a problem is usually a departure from some normal functions, for instance, failure to attain objectives.
5 0
3 years ago
How do I do this? I need help.
Vsevolod [243]

Answer:

im so so sorry i dont know how to do this

Explanation:

4 0
3 years ago
XYZ Company makes 400 widgets. The variable costs are $35.60 per unit and fixed costs are $30.00 per unit; however, $21.40 in fi
Anuta_ua [19.1K]

Answer:

increase in income  of $80

Explanation:

Prepare an Analysis of Costs and Savings if the Company buys from Outside Supplier.

Note : The  fixed costs per unit at are unavoidable are irrelevant and disregarded in this decision.

<u>Analysis of Costs and Savings</u>

Purchase Price (400 widgets × $44.00)  =    ($17,600)

Savings :

Variable Costs ($35.60 × 400 widgets)   =     $14,240

Fixed Cost ( $8.60 × 400 widgets)           =      $3,440

Net Income effect                                      =           $80

Conclusion :

The effect on net income if the company instead buys the widgets is an increase in  income  of $80

3 0
3 years ago
Mountaineer Excavation operates in a low-lying area that is subject to heavy rains and flooding. Because of this, Mountaineer pu
vitfil [10]

Answer:

The Journal entries are as follows:

(i) On March 1,

Prepaid insurance A/c Dr. $24,600

        To cash A/c                              $24,600

(To record the purchase of insurance in advance)

(ii) On December 31,

Insurance expense A/c Dr. $20,500

             To Prepaid insurance           $20,500

(To record the insurance expense)

Workings:

Insurance expense:

= $2,050 × 10 months (From March 1 to December 31)

= $20,500

4 0
3 years ago
Personal allowances worksheet is what type of document?
bagirrra123 [75]
The document is known as W-4  Form. You fill this form when you are claiming your allowances, but it also helps to guide your boss on how much money should be withheld from your paycheck for federal taxation.
8 0
3 years ago
Other questions:
  • Bild-Rite, Inc., is a Colorado-based firm that does business with clients throughout North America. Bild-Rite oversees construct
    15·1 answer
  • An ad for asian sensations' newest product line of snack foods encourages readers to "thai something new." in this example, the
    6·1 answer
  • What are the fundamental differences between mutual funds and hedge funds?
    12·2 answers
  • Which of the following conditions might result in the best financial decisions?
    9·2 answers
  • Match the scenarios with the economic concepts they illustrate.
    9·2 answers
  • After carefully going over your budget, you have determined you can afford to pay $632 per month toward a new sports car. You ca
    13·1 answer
  • What are the objectives of business​
    8·1 answer
  • Barbara Flynn is in charge of maintaining hospital supplies at General Hospital. During the past year, the mean lead time demand
    9·1 answer
  • Carlo's company hired a contractor in Venezuela to design and build a plant, supply the process technology, provide the producti
    13·1 answer
  • The legal document that describes the rights and obligations of both the bondholders and the issuer is called the bond.
    10·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!