Answer:
a) EOQ = √[(2 x S x D) / H]
- S = order cost = $21
- D = annual demand = 930 x 12 = 11,160
- H = annual holding cost = $35 x 28% = $9.80
EOQ = √[(2 x $21 x 11,160) / $9.80] = 218.7 ≈ 219 shoes
b) total ordering costs = (11,160 / 219) x $21 = $1,070.14
total holding costs = $9.80 x (219 / 2) = $1,073.10
total purchases = $35 x 11,160 = $390,600
total inventory costs = $392,743.24
c) The EOQ model faces two main problems:
- first, it assumes that the demand is constant and can be predicted with 100% accuracy and that is not usually the case. Also, demand might be seasonal which makes the EOQ model useless.
- second, it assumes costs are constant and they are generally not, e.g. the price of shoes might change
Answer: variable input; fixed input
Explanation:
Based on the information given, in the short run, these workers are variable inputs, and the ovens are the fixed inputs.
Fixed inputs are the inputs that can't be easily changed that's increased or reduced in the short run while variable inputs can be increased or reduced easily.
Since Rina cannot change the number of ovens she uses in her production of pizzas in the short run, they're fixed input. The workers are variable input.
If these were the given choices:
A. the vision of the corporate founder
B. expectations of leadership
C. the performance evaluation-reward system
D. the location of the organization’s manufacturing and distribution facilities
The unlikely basis for an organization's culture is D. THE LOCATION OF THE ORGANIZATION'S MANUFACTURING AND DISTRIBUTION FACILITIES.
An organization's culture is based on the vision and mission of the company as well as its rewards to its employees. The culture of an organization is manifested in its treatment to its employees and services rendered to its customers.
There are a lot of factors that can affect income and some of these are listed below:
1. Performance at Work. If you have a good output, you will be compensated with a bigger salary.
2. Educational Attainment. Good education means good opportunities.
3. Years of experience. The longer years of service, the higher the salaries.