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makvit [3.9K]
3 years ago
8

The annual demand for a product is 15,300 units. The weekly demand is 294 units with a standard deviation of 90 units. The cost

to place an order is $28.50, and the time from ordering to receipt is ten weeks. The annual inventory carrying cost is $0.20 per unit. Find the reorder point necessary to provide a 98% service probability. Suppose the production manager is asked to reduce the safety stock of this item by 50%. If she does so, what will the new service probability be?
Business
1 answer:
antiseptic1488 [7]3 years ago
3 0

Answer:

Reorder point = (weekly demand * lead time) + (Z * standard deviation * √lead time) = (294 * 10) + (2.326 * 90 * √10) = 2,940 + 661.99 = 3,602 units

Old safety stock = Z * standard deviation * √lead time = 662 units

new safety stock = 331

331 = Z * 90 * √10

Z = 331 / 284.60 = 1.163

Using Normal distribution function, the new confidence interval is 87.76%

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As the facility manager, you listen to your employees and demonstrate concern and care about their social needs, but still make
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4 0
3 years ago
A. Following are the transactions of a new company called Pose-for-Pics.
stich3 [128]

Answer:

The August 31 trial balance is a debit and credit amount of $16,986

Explanation:

The journal entries for the following transactions is as follows;

  General Journal                          Debit                              Credit

1. Cash                                            $6,500

  Photography equipment            $33,500

  Common stock                                                                 $40,000

2. Prepaid insurance                       $2,100

   Cash                                                                                   $2,100

3. Office supplies                             $880

   Cash                                                                                    $880

4. Cash                                              $3,331

   Photography fees                                                              $3,331

5. Utilities expense                           $675

   Cash                                                                                     $675

August 31 trial balance                     $16,986                         $16,986  

The August 31 trial balance is a debit and credit amount of $16,986

4 0
3 years ago
On June 30, Collins Management Company purchased land for $460,000 and a building for $520,000, paying $360,000 cash and issuing
sammy [17]

Answer:

See Explanation

Explanation:

(a)

Journal entry to record the transaction is,

Particulars                                                                  Debit      Credit

Land and Building (460000 + 520000)                 $980,000

Cash Paid                                                                           $360,000

Mortgage Payable (980,000 - 360,000)                         $620,000

We assume that 4% interest is chargeable each semiannual payment and that each subsequent payment is charged 4% on the remaining amount of principal minus any preceding principal payments.

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First installment = Principal + Interest payable

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(c)

Second payment = 31,000 + [(620,000 - 31000) * 0.04] = $54,560

Since the chart of accounts is not provided you can confirm the the account headings.

Hope that helps.

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