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Tpy6a [65]
3 years ago
15

Using a computerized Inventory Management System, a Paint Supply Store franchise continuously monitors the inventory of all the

paint located at each of their 15 stores and their distribution warehouse. The Paint Supply Store franchise sells an average of 74 gallons of Purple Paint every week (for 52 weeks per year, Standard Deviation of the Demand = 8 gallons). They purchase Purple Paint from their supplier at a price of $4.00 per gallon.It takes 2.50 weeks to receive an order from the supplier.Administrative costs for Ordering paint have been estimated to be $35 per order.Holding Costs = 40% of the purchase price per gallon per year.How much Safety Stock should the company hold to have a Service Level of 99.0%?
Business
1 answer:
storchak [24]3 years ago
3 0

Answer: 29.4 gallons

Explanation:

The Safety Stock that should be held by the company to have a Service Level of 99.0% will be:

= Z × σ × ✓LT

Z = 2.326

σ = Standard deviation = 8

LT = Lead time = 2.50

Safety stock = = Z × σ × ✓LT

= 2.326 × 8 × ✓2.50

= 2.326 × 8 × 1.58

= 29.4 gallons

The safety stock is 29.4 gallons.

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In the capitalistic economy what ensures that a firm will survive only way to serve its customers wall by providing products and
olga55 [171]

Answer:

Competition

Explanation:

In the capitalistic economy, COMPETITION ensures that a firm will survive only if it serves its customers well by providing products and services that meet their needs.

Hence, Competition is a favorable concept for business because it stimulates the improvement and growth of new and decent commodities in the markets.

To consumers, competition is good because it normally leads to better service and lower the costs or prices of commodities.

3 0
3 years ago
If purchasing power parity​ holds, the price level in Turkey is​ 210, and the nominal exchange rate​ (E) = 0.84 Turkish lira ​=
g100num [7]

Answer:

c. 250

Explanation:

Since; Turkish lira ​= 1 Brazilian​ real

and exchange rate​ (E) = 0.84

Considering that Brazil is the home country

The price level in Turkey = 210

∴ Brazil price level = 210 / 0.84 = 250 real

7 0
3 years ago
Newly-implemented government regulations have reduced the availability of raw materials for Blair Woodworking Corp. This would b
Arlecino [84]

Answer: Threat

Explanation:

 The threat is one of the important factor in the SWOT analysis that is basically used for analyzing the main causes of the damages in an organization, products and the venture. The threats can be defined as external or in a negative way.

The SWOT is stand for the strengths, weaknesses, opportunities, and the threats and these are the techniques for evaluating the four main aspects of the business.

 According to the given question, the implementation of the new government regulations are reducing the availability of the raw materials and this is known as the external organization threat in the given SWOT analysis.

 Therefore, Threat is the correct answer.

3 0
3 years ago
Torch Industries can issue perpetual preferred stock at a price of $58.50 a share. The stock would pay a constant annual dividen
Snezhnost [94]

Answer:

11.96%

Explanation:

Calculation for Torch Industries company's cost of preferred stock,

Using this formula

Cost of preferred stock = Dividend / Stock Price * 100

Where:

Dividend =$7.00

Stock Price = $58,50

Hence,

= $7 / $58.50 * 100

= 11.96%

Therefore the company's cost of preferred stock will be 11.96%

3 0
3 years ago
Splish Company provides the following information about its defined benefit pension plan for the year 2017. Service cost $110,00
kipiarov [429]

Answer: $155,520

Explanation:

Pension Expense = Service Cost - Expected return on plan assets + Prior service cost amortization + Interest cost

Interest Cost

= Interest rate * Projected benefit obligation

= 0.09 * 728,000

= $65,520

Pension Expense = 110,000 - 30,000 + 10,000 + 65,520

= $155,520

3 0
3 years ago
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