Answer:
a) 32 refrigerators
b) 28.39 approximately 29 refrigerators
Explanation:
Given:
Cost of order, S = $100
H = 20% of 500 = 100
Cost of refrigerator = $500
Annual demand, D = 500
S.d = 10
Lead time, L = 7 days.
a) To find the economic order quantity, Q_opt, let's use the formula:
The economic order quantity is 32 refrigerators.
b) The reorder point, R, is calculated as:
R = (d' * L) + ( z * s.d)
Where d' is daily demand which is calculated by dividing annual demand by 365 days.
d' = 500/365 = 1.37
At 97% service probability.
Using the excel function, NORMSINV(0.97) = 1.88.
Therefore z = 1.88
Solving for R, we have:
R = (1.37 * 7) + (1.88 * 10)
= 28.39
≈ 29
If the distributor wants a 97% service probability, the reorder point, R, should be 29 refrigerators
I don’t know my name I don’t play by the rules of the game so you do say I’m not trying
Answer:
One thing to clear ab initio is that equilibrium quantity and price are achieved when the demand and supply curves intersect at a point. Therefore, at equilibrium, the demand and supply in quantity are equal.
a) If a technological improvement reduces the cost of product, the equilibrium price will reduce and equilibrium quantity will be equal to the quantity demanded and supplied.
b) If there is a reduction in the number of sellers, the equilibrium price will increase and the equilibrium quantity will be equal to the quantity demanded and supplied.
c) If there is a tax levied on the sellers of apps, the equilibrium price will increase and the equilibrium quantity will be equal to the quantity demanded and supplied.
Explanation:
a) The market is in equilibrium when the supply and demand curves intersect, meaning that the quantity demanded and quantity supplied are equal. The price and quantity at which this intersection occurs are called the equilibrium price and equilibrium quantity respectively. In economics, when quantity supplied equals quantity demanded, an equilibrium situation is achieved, and it is represented by this equation: Qs = Qd; where Qs is quantity supplied and Qd is quantity demanded.
b) Equilibrium price reduces when there is a cost reduction and more supplies are pushed to the market to meet demand.
c) When suppliers leave the market, it means that the market price and demand are no longer attractive and beyond their individual influence. This leads to a reduction in quantity supplied overall.
d) Sales tax increases the price of goods and services, and equilibrium will be achieved when there consumers demand the product with increased price and sellers are willing to produce and sell at such a price.
a. tariff-----------------the government puts a high tax on sugar made in other countries.
A tariff is a tax forced on imported products and ventures. Tariffs are utilized to limit imports by expanding the cost of products and ventures bought from abroad and making them less alluring to buyers.
Tariffs can have unintended symptoms, be that as it may. They can make household ventures less proficient by decreasing rivalry. They can hurt local purchasers, since an absence of rivalry tends to push up costs.
b. quota-----------------the government limits the import of sugar from other countries
A quota is a legislature forced exchange limitation that restricts the number or fiscal estimation of merchandise that a nation can import or fare amid a specific period. Nations utilize quota in universal exchange to help control the volume of exchange amongst them and different nations. Nations here and there force them on particular merchandise to decrease imports and increment residential creation. In principle, amounts support local generation by limiting remote rivalry.
c. subsidy------------the government pays sugar farmers to keep sugar prices low.
A subsidy is an advantage given to an individual, business or foundation, for the most part by the administration. It is as a rule as a money installment or an expense decrease. The subsidy is regularly given to evacuate some kind of weight, and usually thought to be in the general enthusiasm of the general population, given to advance a social decent or a financial arrangement.
