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Lynna [10]
3 years ago
15

The annual demand for a product has been projected at 2000 units. This demand is assumed to be constant throughout the year. The

ordering cost is $20 per order, and the holding cost is 20 percent of the purchase cost. The purchase cost is $40 per unit. There are 250 working days per year. Whenever an order is placed, it is known that the entire order will arrive on a truck in 6 days. Currently, the company is ordering 500 units each time an order is placed. What level of safety stock would give a reorder point of 60 units? A. 12 B. 18 C. 10 D. 14
Business
1 answer:
Musya8 [376]3 years ago
6 0

Answer: 12

Explanation:

The level of safety stock that would give a reorder point of 60 units goes thus:

Firstly, we should note that the formula that'll be used in calculating the reorder point will be:

= dxL + Safety stock

where,

Reorder point = 60

dxL = (2000/250) x 6 = 48

Safety stock = Unknown

We then put the values gotten into the formula which will be:

Reorder point = dxL + Safety stock

60 = 48 + safety stock

Safety stock = 60 - 48

Safety stock = 12 units

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<u>Answer: </u>Just in time inventory

<u>Explanation:</u>

Just in time is the strategy that is generally used in production units where they can efficiently manage the stock by reducing the waste. The waste can be reduced by receiving the goods only when they are needed so this reduced the inventory costs.

Inventory cost are the costs related to procurement, storage and maintenance of the inventory. Walgreens store can reduce the stocking of goods cost by ordering them on time when required alone. The small shipment of goods for every two days once can reduce the inventory cost.

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4 years ago
Purchasing power parity does not hold in the short to medium run because:____.
maria [59]

Answer:

some goods aren't internationally traded

Explanation:

Purchasing power parity is most popularly known as the PPP. It may be defined as the measure of the prices of the various countries which makes use of the price of some specific goods in order to compare the absolute purchasing capability or power for the countries' currencies.

It is used to measure and compare prices at different locations.

The purchasing power does not hold good in the short to the medium run as different countries produces different goods and as such all the goods are not internally traded all over the locations or countries.

8 0
3 years ago
Lax LLC purchased only one asset during the current year (a full 12-month tax year). On August 26 Lax placed in service computer
Elena-2011 [213]

Answer:

$4,000

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Therefore :

$20,000 ×0.20 = $4,000.

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Question 7
Katarina [22]
The correct answer would be A
7 0
3 years ago
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A vertical as curve means that the level of aggregate supply (or potential gdp) will determine the real gdp of the economy, rega
Serggg [28]

A vertical as curve means the level of aggregate supply (or potential GDP) will determine the real GDP of the economy, no matter the level of aggregate demand.

In general, economic process is a condition in which income increases from the emergence of an increase in the production of goods and services. However, this increase in income has not been compared to the expansion in population. this will be seen from the results of improvements in various fields, like technology.

In its development so far, there are various theories of economic growth. This theory itself appears plenty to explain the growth cycle as well as the factors that directly influence an increase in the national economy by experts. Among the various theories that have emerged, here are a number of them:

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You can learn more about economic growth here brainly.com/question/16999482

#SPJ4

8 0
2 years ago
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