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
weeeeeb [17]
3 years ago
6

A large distributor has 4 retail outlets. Currently each outlet manages its ordering independently. Demand at each retail outlet

averages 1000 per day. Assume there are 250 days per year. Each unit of product costs 120 dollars, and holding cost per unit of product per year is 12% of the product cost. The fixed cost of each order (administrative plus transportation) is 900 dollars in the decentralized system. The fixed cost of each order in the centralized system is twice of the decentralized system. Holding cost per unit are the same in the two systems.
3a. How much should ALL the warehouses order together to minimize the total cost in the CENTRALIZED system?The potential answers are:_______.A: 14606 units.
B: 15811 units.C: 19365 units.D: 12344 units.E: 12500 units.3B. How much does EACH warehouse need to order individually to minimize the total cost in the DECENTRALIZED system?The potential answers are:_______.A: 5164 units.B: 6124 units.C: 3904 units.D: 3953 units.E: 5590 units.
Business
1 answer:
Grace [21]3 years ago
7 0

Answer:

a. Units to be ordered to minimize the total cost in the CENTRALIZED system:

= B: 15811 units.

b. Units to be ordered to minimize the total cost in the DECENTRALIZED system:

= E: 5590 units.

Explanation:

a) Data and Calculations:

Demand at each retail outlet = 1,000 per day

Number of days in a typical retail year = 250 days

Total annual demand at each retail outlet = 250,000 (1,000 * 250)

Total annual demand at the distributor = 1,000,000 (250,000 * 4)

Cost of each unit of product = $120

Total cost of product at each retail outlet = $30,000,000 ($250,000 * $120)

Total cost of product at the distributor = $120 million

Holding cost per unit = $14.40 ($120 * 12%)

Ordering cost per order at each retail outlet = $900

Ordering cost per order at the distributor = $1,800 ($900 * 2)

a. Units to be ordered to minimize the total cost in the CENTRALIZED system:

= EOQ = square root of (2 x D x S/H)

where D = annual demand

S = ordering cost

H = Holding cost

= square root of (2 * 1,000,000 * $1,800)/$14.40

= square root of 250,000,000

= 15,811 units

= square root of (2 * 250,000 * $900)/$14.40

= square root of 31,250,000

= 5,590 units

You might be interested in
Below are the account balances for a company at the end of December. Accounts Balances Cash $ 4,900 Salaries expense 1,950 Accou
Alexus [3.1K]

Answer:

See below

Explanation:

The preparation of the end December income statement for the company is seen below;

Service revenue

$8,800

Less:

Salaries expenses

($1,950)

Utilities expenses

($1,000)

Net income

$5,850

5 0
2 years ago
"Ethan (single) purchased his home on July 1, 2009. He lived in the home as his principal residence until July 1, 2016, when he
melisa1 [442]

168,000 is amount of the gain is Ethan allowed to exclude from his gross income

Solution:

Ethan's post 2009 non-qualified use is 2 years.

He owned the property for 10 years so he is not allowed to exclude 20% of the gain

= $210,000 × 20% = $42,000

He is allowed to exclude = ($210,000 - $42,000)

                                          = $168,000

7 0
3 years ago
(8 points) The following information relates to the Windsor Company.DateEnding Inventory(End-of-Year Prices)PriceIndexDecember 3
ad-work [718]

Answer:

Windsor Company

   year             Inventory               Indexes       Inventory        Change from prior y

                    at year prices                          at base year price

2013              $63,500               100                   63,500                    -  

2014               105,434               119                      88,600                25,100

2015               113,446                131                     86,600               (2000)

2016                128,792              136                    94,700                8,100

2017                118,158                141                      83,800               (10,900)  

Dollar Value Inventory

Dec 31 , 2013     $63,500 at 1.00                   <u>$63,500</u>

Dec 31, 2014        $63,500  at 1.00               $63,500

                             25,100 * 1.19                       <u> 29,869</u>

                                                                          <u>93,369</u>

Dec 31 2015            $63,500*1.00                  63,500

                                 23,100*1.19                     <u>27,489</u>

                                                                       <u>  90,989</u>

Dec 31, 2016           $63,500*1.00                    63,500

                                  23,100*1.19                       27,489

                                    8,100*1.36                    <u>    11,016</u>

                                                                          <u> 102,005</u>

Dec 31 , 2017              $63,500*1.00                 63,500

                                    20,300*1.19                   <u> 24,157</u>

                                                                           <u> 87,657     </u>  

 

Explanation:

7 0
3 years ago
A society decides that it needs to produce more corn to feed the growing population. What must it do before it begins the produc
Aneli [31]

Answer:

Perform an analysis on existing resources such as land availability, water availability, manpower, mechanization

Explanation:

The first thing required in such case is to first analyze the existing resources available to them to begin the production process. One factor to be considered is water availability. Do they have the available amount of water for irrigation purposes or for other purposes in the production process. Do they have available land area that can feed a growing population. They need to also check if they have adequate manpower and mechanization to engage in such large-scale production of corn.

3 0
3 years ago
A firm has an issue of $1,000 par value bonds with a 8 percent stated interest rate outstanding. The issue pays interest annuall
dem82 [27]

Answer: $1268.20

Explanation:

value of the bond today = Present value of coupon (interest) payments + present value of principal = 120[PVOAIF8%, 10] + 1000[PVIF8%, 10] =1,268

6 0
3 years ago
Other questions:
  • During the month of july, clanton industries issued a check in the amount of $845 to a supplier on account. the check did not cl
    15·2 answers
  • Motivation consists of being enthusiastic, energized, and engaged to achieve a goal or objective. The three basic elements of mo
    14·2 answers
  • Fin has been a new manager for a couple of weeks. over time, he realizes his team likes to socialize during meetings, which tend
    10·1 answer
  • A second job interview would most likely be in which stage of knapp's relational model? integrating intensifying bonding experim
    8·1 answer
  • Channing Corporation makes two products (A1 and B2) that require direct materials, direct labor, and overhead. The following dat
    10·1 answer
  • n the 1930s, what caused Canada to respond by raising its tax on goods imported from the United States? the Glass-Steagall Act t
    11·1 answer
  • Peroni Corporation sold a parcel of land valued at $300,000. Its basis in the land was $250,000. For the land, Peroni received $
    14·1 answer
  • A country is attempting to measure its growth rate in technology. This is: possible to estimate using the growth accounting equa
    5·1 answer
  • Forlornistan is a country in the midst of a serious economic downturn. Forlornistan's GDP has declined steadily for over three y
    14·1 answer
  • Last year the Baldwin company increased their equity. In 2020 their equity was $49,131. Last year (2021) it increased to $54,834
    5·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!