Answer:
a) safety stock = z-score x √lead time x standard deviation of demand
z-score for 99.9% = 3.29053
√lead time = √7 = 2.6458
standard deviation of demand = 3
safety stock = 3.29053 x 2.6458 x 3 = 26.12 ≈ 26 soaps
reorder point = lead time demand + safety stock = (7 x 16) + 26 = 138 soaps
EOQ = √[(2 x S x D) / H]
S = order cost = $10
D = annual demand = 16 x 365 = 5,840
H = $0.05
EOQ = √[(2 x $10 x 5,840) / $0.05] = 1,528.40 ≈ 1,528 soaps
b) total order costs per year = (5,840 / 1,528) x $10 = $38.22
total holding costs = (1,528 / 2) x $0.05 = $38.20
total annual ordering and holding costs = $76.42
Answer:
variable pricing
Explanation:
A variable pricing strategy refers to selling a same product or service at a different price depending on the sales location, date, or other factors. This type of strategy is used to try to maximize revenue by adjusting price to the different categories of our points of sale or our customers.
In case of sports teams, they will price their seats based on other factors like who is the opponent (current champion v. bad teams), day of the week (weekends v. weekdays) or the time of the season (middle of the season v. near playoffs), etc.
Answer:
I have solved part a) because question contains only part a) however it has 3 more parts as well but that are not mentioned in the question. Part a) is explained below.
Explanation:
a) The distribution should be right skewed as most of the numbers lies at that side while using the median to correctly represent an observation in the distribution.
To represent the variability of the observations, interquartile range could be used. Since, there is a good number of expensive houses and this would increase the mean and standard deviation. So, it is better to use interquartile range to represent it, i.e. upper quartile for expensive houses, and lower quartile for less expensive houses and middle quartile for mid-range priced houses.
The answer is a loan agreement because you agreed to by the car
