answer.
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
Olenka [21]
2 years ago
12

A distributor of large appliances needs to determine the order quantities and reorder points for the various products it carries

. The following data refer to a specific refrigerator in its product line.
Cost to place an order $100 / order
Holding cost 20 percent of product cost per year
Cost of refrigerator $500 / unit
Annual demand 500 units
Standard deviation of
demand during lead time 10 units
Lead time 7 days
Consider an even daily demand and a 365-day year.
a. What is the economic order quantity?
b. If the distributor wants a 97 percent service probability, what reorder point, R, should be used?
Business
1 answer:
Mkey [24]2 years ago
4 0

Answer:

a. 32 refrigerators

b. 29 refrigerators

Explanation:

a. The computation of the economic order quantity is shown below:

= \sqrt{\frac{2\times \text{Annual demand}\times \text{Ordering cost}}{\text{Carrying cost}}}

= \sqrt{\frac{2\times \text{500}\times \text{\$100}}{{\$500 \times 20\%}}}

= 32 refrigerators

b. Now the reorder point is

= Annual demand ÷ total number of days in a year × lead time + (service level × standard deviation for the lead time)

= 500 units ÷ 365 days × 7 days + (1.90 × 10 units)

= 9.59 + 19

= 29 refrigerators

You might be interested in
Which of the following best describes costs assigned to the product under the variable costing method? Direct labor (DL) Direct
masya89 [10]

Answer:

DL, DM, and VOH.

Explanation:

Under the variable costing method, direct labor cost, direct material cost and variable manufacturing overhead cost are cost assigned to the product. administrative, fixed manufacturing overhead cost are not variable cost and hence cannot be assigned to a product under variable costing method. Variable costing methods considers only manufacturing costs that change in total with changes in production level.

3 0
2 years ago
Question 3 Lara Beal allocates wealth between two periods: youth and old age. Currently (in her youth) she has $8,000 in cash. S
Gnesinka [82]

Answer:

The correct answer is "$9450".

Explanation:

Given:

Payoff from investment,

= $6000

Lending to bank,

= 8000-5000

= 3000

Now,

At 15% interest,

The amount to be received from bank will be:

= 3000\times (1+\frac{15}{100} )

= 3000(1+0.15)

= 3000\times 1.15

= 3450 ($)

hence,

In her old age, most she can assume will be:

= 6000+3450

= 9450 ($)

4 0
2 years ago
Mother & daughter jewelers breaches its lease with longview mall and vacates the premises six months before the end of the t
evablogger [386]

The answer to the question is use reasonable means to find a new tenant to mitigate damages. This particular approach is actually the preferred method when dealing with contract breaches, which is part of the duty to mitigate, applied to the landlord.

In this context, Longview Mall has a duty to find another tenant to ensure that the property does not sit empty for a long period of time (maximum 2 years).

5 0
2 years ago
Charges that firms are using "sweatshop" labor to produce their products are likely to occur during the ________ phase of the st
Rainbow [258]

Answer:

Implementation Phase

Explanation:

After Planning, it is imporrant to carry out clarified Implementation to successfully carry out what need to be done and when. This is important to ensure your plan is achieved without fault. Sweatshop labour which is a situation where workers are employed at low wages and mostlyunder unhealthy conditions to produce products usually occurs during the implementation phase.

7 0
2 years ago
Read 2 more answers
Wells Company's delivery truck, which originally cost $70,000, was destroyed by fire. At the time of the fire, the balance of th
beks73 [17]

Answer:

D) $17,500 gain.

Explanation:

Wells Company should record the following transactions:

  • Dr  Cash account 40,000
  • Dr Accumulated Depreciation Vehicles account 47,500
  • Cr Vehicle account 70,000
  • Cr Gain on Disposal account 17,500

$40,000 in cash was received and the accumulated depreciation balance should equal to zero, therefore they must be debited.

The vehicles account balance should equal zero and the rest is gain on disposal, therefore they must be credited.

4 0
2 years ago
Other questions:
  • Which of the following is a control problem related to segregation of duties? a. Bob order office supplies and deposits the comp
    9·1 answer
  • What makes data mining an important business tool? What types of information does data mining produce? In what type of circumsta
    5·2 answers
  • A perpetuity will pay $1000 per year, starting five years after the perpetuity is purchased. What is the present value (PV) of t
    8·1 answer
  • Which one of the following relationships is stated correctly? Multiple Choice The capital gains yield is equal to zero for a zer
    9·1 answer
  • Warson Motors wants to raise $2 million by selling 20-year coupon bonds at par. Comparable bonds in the market have a coupon rat
    5·1 answer
  • Lupe's recorded balance was off by $43, and she thinks that it’s because she made a mistake in her records. What mistakes did sh
    12·2 answers
  • On July 1, 20Y7, Pat Glenn established Half Moon Realty. Pat completed the following transactions during the month of July:
    6·1 answer
  • There are zero coupon bonds outstanding that have a YTM of 6.09 percent and mature in 17 years. The bonds have a par value of $1
    12·1 answer
  • Mr. Algazi provides the information his client has requested through a voice message.
    13·1 answer
  • How has globalization made countries more interdependent? Choose five answers.
    8·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!