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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.

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8 0
3 years ago
Company A makes canned tomatoes. The plant operates around the clock and has a long conveyor belt to take the
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<u>Answer:</u>

bulk

<u>Explanation:</u>

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Therefore, the production of tomatoes in a bulk is a continuous process which goes on around the clock on a conveyor belt and the final products are sent out in batches which have their own unique identity number.

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3 years ago
A factory currently manufactures and sells 800 boats per year. Each boat costs $5,000 to produce. $4,000 of the per-boat costs a
spayn [35]

Answer:

B

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2 years ago
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Answer: The answer is Net income $180,000

Explanation:

All star Exposure

Monthly income Statement

$ $

Sales. 475,000

Less: Expenses

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Selling Expenses 12,000

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---------------------

(295,000)

---------------------

Net income. 180,000

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The All star income statement has no line item for cost of good sold because cost of good sold is a direct cost incurred by All star Exposure on the goods sold. it does not appear as part of the expenses in the income statement.

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