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Lunna [17]
3 years ago
10

GROCERY STORE PROBLEM: A local grocery store faces demand for one of its items at a constant rate of 20,000 boxes per year. It c

osts them $5 to process an order and $0.50 per box per year to carry the item in stock. The stock is received three working days after an order is placed. Assume 250 working days in a year and no backordering. What is the demand during lead time assuming that there is no variability
Business
1 answer:
harkovskaia [24]3 years ago
3 0

Answer: 240

Explanation:

The following information can be gotten from the question:

Annual demand (D)= 20000

Daily demand (d) = 20000 / 250 = 80

Ordering cost (S) = 5

Holding cost (H) = 0.5

Lead time (L)= 3 days

The demand during lead time would be gotten by multiplying the daily demand by the lead time. This would be:

= 3 × 80

= 240

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A newsvendor orders the quantity that maximizes expected profit for two products, X and Y. The critical ratio for both products
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A. Product A, because it has less certain demand.

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Answer:

1) loss at disposal                   68,000 debit

  accumulated depreciation 182,000 debit

                 milling machine          250,000 credit

2) loss at disposal                   33,000 debit

   cash                                     35,000 debit

  accumulated depreciation 182,000 debit

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3)

   cash                                     68,000 debit

  accumulated depreciation 182,000 debit

                 milling machine          250,000 credit

4) cash                                     80,000 debit

   accumulated depreciation 182,000 debit

   gain  at disposal                          12,000 credit

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the book value is the same for all alternatives:

cost - accumualted depreciation

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from #2 to #4 we recieve cash for the milling machine to determinate the loss/gain we need to do as follows:

proceeds less book value = result (gain if positive loss if negative)

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3)         68,000 - 68,000 = 0

4)          80,000 - 68,000 = 12,000

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Answer:

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2. after inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.  

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