Solution :
Given data:
Annual demand, D = 180,000 chairs
Ordering cost, F = $ 150 per order
Annual holding cost per unit, C = $25
Lead time of order, L = 5 days
Standard deviation of order during lead time = 30
a). The optimal order quantity
= 1469.69
= 1470 (rounding off)
b). The Z value of the customer service of 90%,
i.e., the probability of 0.90 as per normal distribution table = 1.29
∴ Safety stock = Z value x standard deviation of order during lead time
= 1.29 x 30
= 38.7
= 39 (rounding off)
c). The reorder point
= 3039
d). The optimal annual total inventory cost
= 18367.34 + 18375
= $ 36,742.34
The correct answer is choice b, incompatible duties.
There are three primary reasons why people commit fraudulent activity, which is represented in the Fraud Triangle. The three primary factors that lead to fraud are opportunity, financial pressure and rationalization.
Answer:
The correct answer is b. increases.
Explanation:
In a market that works as perfect competition (according to Microeconomics), an increase in demand (and the consequent decrease in inventories of producers) leads producers to increase their sales prices of their products, in order to also increase its level of production, until it equals demand (since at higher prices demand decreases) and this causes the market to balance, this is called economic equilibrium. In a competitive economy, producers can only increase their level of production if the sales prices of their products rise, the reason is that production costs increase with volume.
Excess demand occurs when there are imperfections in the market (such as when the Government sets maximum sales prices, at a price below the market equilibrium price) and for this reason the market does not reach equilibrium, where the quantity demanded and offered of the product are equal. When a market is in excess demand, the quantity demanded by consumers is greater than the quantity supplied by sellers, this causes the inventories of the producers to fall and they cannot increase their production.
Answer:
The fans as they purchase tickets
Explanation:
The government has imposed a $2 tax per seat. The stadium management will increase the price of tickets per seat by at least $2. It means the customers (fans) will pay an extra amount per seat to cater for the taxes.
The stadium management will act as a tax intermediary. They will collect the $2 per seat tax from the ticket sales and remit it to the government.
