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2 years ago

According to the eTextbook, ______ is the lot size (Q) that will minimize total annual inventory cost.

Business

1 answer:

enot [183]2 years ago

4 0

Answer:

EOQ (Economic Order Quantity).

Explanation:

As the acronym goes EOQ, it is economic order quantity which is seen to reduce or hold the amount of raw material been ordered. This is seen by experts as a formula in production that intels the most optimum and economic purchase pattern in purchase of goods or materials to be used in production. Therefore this will directly be seen to have a big effect in the total size if an order; thereby causing a reduction in its annual inventory cost.

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A pension fund has an average duration of its liabilities equal to 15 years. The fund is looking at 5-year maturity zero-coupon

gayaneshka [121]

Answer:

The 52 of its portfolio should be allocated to the zero-coupon bonds to immunie if there are no other assets funding the plan.

Explanation:

the duration of the perpetuity = (1+YTM)/YTM

= (1+0.04)/0.04

= 26 years

the weights of the bonds = w

5*w + 26*(1-w) = 15

5*w + 26 - 26*w = 15

21*w = 11

w = 0.52

Therefore, The 52 of its portfolio should be allocated to the zero-coupon bonds to immunie if there are no other assets funding the plan.

7 0

2 years ago

the nominal interest rate is 7 percent and the expected inflation rate is 4 percent. the real interest rate is

Hoochie [10]

Answer:

2.88%

Explanation:

According to the fisher equation :

(1 + Nominal interest ) = (1 + real interest) (1 + inflation rate)

(1.07) = (1.04) x (1 + real interest)

(1.07) / (1.04) = (1 + real interest)

1.028846

real interest rate = 2.88%

6 0

2 years ago

Consider luxury weekend hotel packages in las vegas. When the price is $250, the quantity demanded is 2,000 packages per week. W

Aleonysh [2.5K]

Answer: Elasticity of luxury weekend hotel packages in las vegas is -1.432.

Explanation:

Price elasticity of demand measures the responsiveness of quantity demanded to a change in the price of the good.

Mid point method-

$e=\frac{Q2-Q1}{\frac{Q1+Q2}{2} } * \frac{\frac{P1+P2}{2} }{P2-P1}$ $e=\frac{1700-2000}{\frac{2000+1700}{2} } * \frac{\frac{280+250}{2} }{280-250}$

$e=\frac{-300}{1850} } * \frac{265}{30}$

$e= -0.16216*8.8333$

$e= -1.432$

Elasticity of luxury weekend hotel packages in las vegas is -1.432.

5 0

2 years ago

José spends most of his time thinking about Sheila, the love of his life. This had led to José neglecting his course work. From

Rainbow [258]

Answer:

D. his fixed amount of psychic energy

Explanation:

6 0

3 years ago

ppreciation of the euro relative to the U.S. dollar will cause a U.S.-based MNC's reported earnings (from the consolidated incom

Tems11 [23]

Answer:

Decrease or fall, Purchasing

Explanation:

Appreciation is the term which is defined as the increase in the currency value relative to the another currency, which could be exchanged for a huge amount of foreign currency.

So, when there is appreciation in euro in relation to US dollar, it cause US grounded MNC reported earnings to decrease as the US dollar will not be exchanged because euro is appreciated.

And when the firm desire to reduce the exposure to the exchange rate movements, it might stabilize the reported earnings through purchasing the euros in the foreign exchange market.

6 0

2 years ago