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
zvonat [6]
2 years ago
9

Cooper Company has an average demand of 50 units per day. Lead time from the supplier averages 20 days. The combined standard de

viation of demand during lead time is 20 units. The item costs $75 and the inventory carrying cost is 24%. Answers to the next two questions are based on this information. How much is the annual inventory carrying cost of the safety stock because of this decision
Business
1 answer:
Mashutka [201]2 years ago
5 0

Answer:

The annual inventory carrying cost of the safety stock = $594

Explanation:

Given that:

The average daily demand (d) = 50 units / day

The lead time (LT) = 20 days

The combined standard deviation of demand lead time = 20 units.

The item cost  = $75

The inventory carrying cost = 24% of the item cost

i.e. (24/100) × 75 = $18 of the item cost

Let assume that the management of the company wants to offer a service level of 95%.

Then the z-value that relates to 95% confidence interval level = 1.65

So; the safety stock relating to the 95% service level = z \times \sigma_{dlT}

= 1.65 × 20

= 33 units

Now:

The annual inventory carrying cost of the safety stock = Safety stock × Inventory carrying cost.

= 33 × $18

= $594

You might be interested in
Conduct online research to discover how to start and maintain a good credit rating throughout your life. Write a 500-word report
fiasKO [112]
They would need way more credit and more money to pay for it
4 0
3 years ago
Read 2 more answers
Q 1.7: A small business owner has decided to form a ______________ after deciding that she wants to maximize revenue, minimize t
Vadim26 [7]

Answer:

Sole proprietorship

Explanation:

A sole proprietorship is a business form of an organization in which there is only a single owner who operates and controls the business. The main motive  of every organization is to maximize revenue, minimize losses and taxes. Also it has unlimited liability

Therefore in the given situation, the sole proprietorship would be the appropriate and the same is to be considered

6 0
3 years ago
True/False: The most accurate method to calculate the amounts in a budget is to apply a specific percentage of increase or decre
Dafna11 [192]

Answer: The Answer is False

Explanation: Your welcome :)

7 0
2 years ago
Read 2 more answers
Target Costing Portland Equipment Company wants to develop a new log-splitting machine for rural homeowners. Market research has
sergiy2304 [10]

Answer:S 610

Explanation:

To get a return of 10% of sales price is to have a profit of S85 which is 10% of S850.

Handling cost per unit S6000/6000 unit=S1

Other handling cost per unit S59

Raw materials per unit=S95

Target conversations and administrative cost is

850-X-60-95=85

850-X-155=85

-X=85+155-850

-X=-610

X=610

7 0
3 years ago
Important changes are occurring on your team as task agendas become clarified and members begin to understand one another's pers
love history [14]

Answer:

storming stage

Explanation:

Based on the scenario being described within the question it can be said that your team seems to be in the storming stage of team development. This stage is regarded as one of the most difficult and important stages for a team to pass through and where success creates long-term beneficial gains for the team but failures create long-lasting and usually fatal problems for the team.

8 0
3 years ago
Read 2 more answers
Other questions:
  • Suppose the chicago cubs could rent out wrigley field (the field the players play on) to local youth leagues for $11,000 per mon
    10·2 answers
  • The price of cranberry juice suddenly increases. As a result, Glenda begins drinking more grape juice, which is less expensive,
    9·1 answer
  • To determine the quantity of any activity that will maximize total net benefit, economists employ the ________ rule.
    11·1 answer
  • If elodea is an aquatic plant, you can conclude that it releases which has into its environment as a result of photosynthesis?
    12·1 answer
  • A good economic theory___________.
    11·1 answer
  • The City of Crescent Hill operates a central motor pool as an internal service fund for the benefit of the city's other funds an
    7·1 answer
  • Which type of employees typically work in an office environment within schools
    6·1 answer
  • a car travelling at 36km / h accelerates uniformly acceleration final 2m / s ^2 find its velocity in 5 second ​
    5·1 answer
  • What is the target of SEO service?
    11·1 answer
  • The average price of a gallon of gas in 2015 dropped $0.94 (28 percent) from $3.34 in 2014 (to $2.40 in 2015). Let’s see whether
    11·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!