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
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%

You might be interested in
When zappos​ began, it focused primarily on word of mouth​ (wom) to get its message to people. word of mouth is which of the pro
diamong [38]
The promotion mix element that is facilitated by words of mouth is ADVERTISING. 
Word of mouth advertising is a form of unpaid spread of positive marketing information which move from one person to another. The method involves passing information across to other people by meaning of oral communication.
5 0
3 years ago
Loop 1604 Inc. has prepared a static budget at the beginning of the month. At the end of the month the following information is
Charra [1.4K]

Answer:

Flexible budget variance for Sales Revenue = $3,960 Favorable

Explanation:

Provided budget is static budget, firstly for calculating flexible budget variance for Sales Revenue.

For this flexible budget is made of same level of quantity as of actual level.

therefore Flexible budget sales = 990 units @ $70 per unit price will be same as of static budget.

Therefore Variance = Standard Flexible Budgeted Sales - Actual Sales

Standard Flexible Budgeted Sales = 990 \times $70 = $69,300

Actual Sales Revenue = 990 \times $74 = $73,260

Since actual revenue is more than budgeted sales this is favorable.

Flexible Budget Variance for Sales Revenue = $69,300 - $73,260 = $3,960

Since actual revenue is more than budgeted revenue therefore this is a favorable variance.

Flexible budget variance for Sales Revenue = $3,960 Favorable

3 0
3 years ago
The neoclassical view holds that long-term expansion of potential GDP due to _______________________ will determine ____________
boyakko [2]

Answer:

1.  economic growth;

2.  the size of the economy

Explanation:

According to the neoclassical standpoint on issues relating to macroeconomics, it is believed that, over a long period of time, the economy will vary around its potential GDP and its natural rate of unemployment.

Therefore, the size of the economy is defined by potential GDP, and wages and prices will adjust in an intelligent manner so that the economy will move back to its potential GDP level of output.

Hence, The neoclassical view holds that long-term expansion of potential GDP due to ECONOMIC GROWTH will determine THE SIZE OF THE ECONOMY

4 0
3 years ago
the audit expectation gap is caused by unrealistic user expectations. what example would not be included in an unrealistic user
Tomtit [17]

The audit expectation gap is caused by unrealistic user expectations. The auditors provides reasonable gap examples that would not be included in unrealistic user expectations.

NASBA believes the expectancy gap relating to fraud and going problems in a financial statement audit may be caused by a few factors: lack of knowledge by way of the general public as to what an audit is and what auditors do; inconsistent audit execution in these regions by some auditors due to lack of expertise.

The expectation hole exists while auditors and the public keep distinct beliefs about the auditors' obligations and obligations and the messages conveyed by way of audit reports. apparently, there's an opening between what the public expects and what it virtually receives.

Learn more about auditors here: brainly.com/question/26048609

#SPJ4

3 0
2 years ago
At which rate is total utility increasing: a constant rate, a decreasing rate, or an increasing rate
Ede4ka [16]

Answer:

a decreasing rate.

Explanation:

Total utility of an individual is the satisfaction which is achieved by consuming one additional unit of good. When a person achieves more goods his marginal utility declines. When the total utility is increased, the rate of utility is decreasing.

6 0
3 years ago
Other questions:
  • The development of kidney failure becomes more prevalent with age; therefore, the amount of _______ in the diet must be reduced.
    9·1 answer
  • Which of the following is not true regarding the use of labor variance information? a.The actual wage rate is almost always diff
    9·1 answer
  • Blanchard Company manufactures a single product that sells for $180 per unit and whose total variable costs are $135 per unit. T
    5·1 answer
  • Solstice Company determines on October 1 that it cannot collect $60,000 of its accounts receivable from its customer, P. Moore.
    12·1 answer
  • 1. The crucible is not fired, as the procedure suggests. The mass of the dirty crucible is recorded. However, the impurities are
    10·1 answer
  • Sometimes called the coverage ratio, this ratio measures the risk that interest payments will not be made if earnings decrease.
    9·1 answer
  • A partnership can be terminated by which of the following
    9·2 answers
  • Blue rorschach inc. has an immediate requirement for 80 laptops and contracts with zenzo electronics for 80 osn laptops at $550
    14·1 answer
  • Bateman Corporation sold an office building that it used in its business for $800,200. Bateman bought the building 10 years ago
    14·1 answer
  • Carla Vista Co. bought a machine on January 1, 2017. The machine cost $180000 and had an expected salvage value of $27000. The l
    14·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!