1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
sleet_krkn [62]
3 years ago
7

A company uses the finite replenishment model to determine the optimal quantity to produce. There are days a year over which dem

and and production occur. The daily demand is ​, and the production rate is per day. The setup cost for production is ​$ per setup. Assuming that the carrying cost is percent of the​ item's ​$ ​cost, what is the​ length, in​ days, of a production run if the company produces the replenishment quantity that minimizes its​ inventory-related costs?
Business
1 answer:
SVEN [57.7K]3 years ago
8 0

Answer:

16.1 days

Explanation:

Note: The full question is attached as picture below

Daily demand d = 520

Annual demand D = 520*250 = 130000

Setup cost S = $680

Production rate p = 875

Holding cost H = 0.25*25 = 6.25

Optimal order quantity Q

Q = \sqrt{2DS/H} \sqrt{p / p -d}

Q = \sqrt{(2*130000*680)/6.25}   \sqrt{875/875-520}

Q = 8350

Length of production run = Q/d

Length of production run = 8350/520

Length of production run = 16.05769230769231

Length of production run = 16.1 days

You might be interested in
Scott wants to accumulate $3,800 over a period of 11 years so that a cash payment can be made for roof maintenance on his summer
Kamila [148]

Answer:

$240.76

Explanation:

The formula to determine the annual deposit is :

p = FV / annuity factor

Annuity factor = {[(1+r)^n] - 1} / r

FV = Future value  

P = Present value  

R = interest rate  

N = number of years  

Annuity factor = (1.07^11 - 1) / 0.07 = 15.783599

p = $3800 / 15.783599 = $240.76

3 0
2 years ago
6 what is electrical Filling ?​
andriy [413]
As charging technology currently has a huge influence on how effortlessly and conveniently drivers can charge their electric vehicles as part of their daily routine, Continental is presenting global innovations for this area of electromobility for the first time.
7 0
2 years ago
Amram Inc. can issue a 20-year bond with a 6% annual coupon at par. This bond is not convertible, not callable, and has no sinki
Reil [10]

Answer:

B) The coupon rate could be less than, equal to, or greater than 6%, depending on the specific terms set, but in the real world the convertible feature would probably cause the coupon rate to be less than 6%.

Explanation:

Amram Inc. is issuing two bonds, one is not convertible and the other one is convertible and callable. Regardless of the coupon rate that they plan to set, convertible and callable bonds will usually (almost always) have a coupon rate that is lower than non-convertible or non-callable bonds.

Convertible bonds are bonds that can be converted or exchanged to common stock. Since convertible bonds offer more investment options, their risk is lower than non-convertible bonds.

Callable bonds is a bond that can be redeemed before the maturity date.

7 0
3 years ago
What is the relationship between a non-callable, option-free fixed rate bond's price and its yield?
Sophie [7]

Answer:

The relationship is that the price for these types of bonds is lower as the Yield is fixed and do not change over time.

The price of a Non-callable bond is cheaper than the price of the Callable bond as the Yield for a Non-callable bond is fixed. This suggest that the investor knows exactly what is the interest that is going to receive until the maturity of the bond.  

5 0
3 years ago
Southern Corporation has a capital structure of 40% debt and 60% common equity. This capital structure is expected not to change
Valentin [98]

Answer:

Cost of equity = 10.9%

Explanation:

<em>The Dividend Valuation Model(DVM) is a technique used to value the worth of an asset. According to this model, the value of an asset is the sum of the present values of the future cash flows would that arise from the asset discounted at the required rate of return.</em><em> </em>

If dividend is expected to grow at a given rate , the value of a share is calculated using the formula below:

D0× (1+g)/Po × (1-F) + g

Do - dividend in the following year, K- requited rate of return , g- growth rate , F= Floatation cost in %

DATA:

D0- 3.68

g- 5%

P=67

K- ?

Po×(1-F)= 67-3.68=$63.32

Ke = 3.68× 1.05/ 63.32   + 0.05 =0.109

Cost of equity = 0.109× 100= 10.9%

Cost of equity = 10.9%

7 0
3 years ago
Other questions:
  • A company pays all selling expenses in the month incurred. Budget information includes: Administrative salaries: $50,000; Sales
    9·2 answers
  • Which of the following cost behaviors cannot be accurately represented by a single straight​ line? A. Fixed costs B. Step costs
    15·2 answers
  • Franklin corporation issues $50,000, 10%, five-year bonds on january 1 for $52,100. interest is paid semiannually on january 1 a
    11·2 answers
  • Cory opens a small jewelry store but has difficulty competing with Bling Jewels, a much larger firm. In his newspaper ad, Cory i
    11·1 answer
  • During last year the price of regular unleaded gasoline in Oakland, California increased 10 percent. If the price elasticity of
    6·1 answer
  • Which of the following should be filed directly after Nigel?Exit Test A Nathaniel B Nickel C Nuttall D Nicolas
    5·1 answer
  • A particular forecasting model was used to forecast a six-month period. Here are the forecasts and actual demands that resulted:
    8·1 answer
  • Indicate whether a change in the value of each of the following determinants of demand leads to a movement along the demand curv
    13·1 answer
  • Hillary enters into a shipment contract with a dress manufacturer for fifty red dresses. The dress manufacturer sends fifty blue
    11·1 answer
  • In 2021, Adonis Industries changed its method of valuing inventory from the average cost method to the FIFO method. At December
    5·2 answers
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!