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kogti [31]
2 years ago
14

Based on the constant demand assumption in the economic order quantity (EOQ) model, the average cycle inventory is: Question 20

options: the order quantity divided by the number of inventory cycles per year. the annual demand divided by the number of inventory cycles per year. half of the order quantity. half of the annual usage.
Business
1 answer:
irina [24]2 years ago
7 0

Answer:

c. half of the order quantity

Explanation:

Based on the constant demand assumption in the economic order quantity (EOQ) model, the average cycle inventory is <u>half of the order quantity</u>

Economic order quantity is a quantity which minimizes the ordering cost and holding cost  

Q = EOQ = \sqrt{2*D*S/ H} where  D = Demand unit, S = Order cost and H = Holding cost

- Ordering cost and the Holding at EOQ will be same

- Average inventory = Q/2

- Average inventory is the half of the order quantity.

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2 years ago
From 2001 to 2004, the U.S. government went from a budget surplus to a budget deficit. According to the open-economy macroeconom
notsponge [240]

Answer: Option (a) is correct.

Explanation:

Correct Option: The supply of loanable funds but not the supply of dollars in the market for foreign-currency exchange.

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The budget deficit in the economy has to be financed either by borrowing or by increasing taxes. This budget deficit occurred because of the tax cuts and higher government spending.

If a country running a budget deficit, which lead to reduction in national saving. We all know that interest rate is determined in the loan market, where savers supply the loans to the private borrowers.

So, if there is a fall in the national saving, this will reduced the supply of loans from savers, which raises the interest rate in an economy.

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Now, if foreign residents want to take an advantage of higher interest rate then they first have to acquire domestic currency.

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4 0
3 years ago
You own a coffee shop where a cup of coffee sells for $2.99. Your cost on the cup of coffee is $0.90. Calculate the margin
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Answer:$2:09

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(Sorry I just read the question wrong)

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3 years ago
Max is the marketing manager at the university bookstore. He is developing his marketing plans for the next school year. The boo
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<u>Solution and Explanation:</u>

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8 0
3 years ago
Which of the following scenarios could lower a firm’s demand for labor? Correct Answer(s) James operates a restaurant in a seasi
Sedaia [141]

Answer:

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I hope my answer helps you.

8 0
2 years ago
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