Answer:
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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.
Answer:
This is a very unlikely situation, since the plant must be really large and the river probably didn't carry a lot of water in the first place. But even if this was possible, it would be illegal for a company to use 100% of the natural resources available. No law or regulation (municipal, state or federal) would allow such thing to happen and assuming it got to court, the court would rule against the company.
Since you need an environmental impact report before you start building a factory, then it would be unlikely that the factory or plant was legally authorized to operate in the first place. The only option is that they built a dam and that is highly regulated.
The correct statement among the given is 'cost of equity is always equal to or greater than the cost of debt'
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Option-c
<u>Explanation:
</u>
Debt on assets which are less likely to lose is secured more uncertainty leads to lower returns, hence lower costs. The risk of loss to equity holders also remains greater and not even assured against any collateral. In comparison to higher risk equity holders foresee higher returns.
This is why debt costs are higher. Such high risk will lead to higher equity costs than debt costs. To investors, equity costs would be returned on equity investment, and debt costs would be made as part of debt investment.
<span>In the word 'slowly', 'ly' is a suffix. The suffix 'less' changes a noun into an adjective, meaning 'without'.</span>
