The optimal reorder point of Sweet Cream Dairy is 27.71 or 28 (rounded off) and Safety stock is 15. 91 or 16 gallons (rounded off)
Explanation:
the reorder point is to multiply the average daily usage rate for an inventory item by the lead time in days to replenish it.
The safety stock formula with standard deviation is more complicated but also more accurate.
Safety stock = desired service level × standard deviation of lead time × demand average
Safety stock = ( 93÷100) × 2.9 × 5.9 = 15. 91 or 16 gallons (rounded off)
Reorder Point = (Average Daily Usage x Average Lead Time in Days) + Safety Stock
= (5.9 x 2) + 15. 91 = 11.8 + 15.91 = 27.71 or 28 (rounded off)
The answers are the following:
a.
Brandon:
$7,000 + [($10,000/4)×3¿= $8,500
Ryan:
$7,000 + [($10,000/4)×1¿= $7,500
b.
Brandon $7,000
Ryan <span>$7,000</span>
Answer:
D. the money in one's pocket
Explanation:
this is so because the financual assets needed fpr a business to produce good and/or services requires money
Answer:
D. Material requisitions authorize the transfer of materials from the production floor to the raw materials warehouse
Explanation:
Material requisitions doesnt authorize anything, just provides information
Answer:
The answer is $80,000
Explanation:
The formula for straight-line depreciation is:
[Cost of asset - salvage value(if any)] ÷ useful life of the asset
Depreciation = $4,000
Cost of asset= ? (represented by y)
Useful life of the asset = 20 years
$4,000 = y ÷ 20 years
y is $4,000 x 20 years
y = $80,000
Therefore, the initial cost of the asset was $80,000
