Authentic Thai rattan chairs are delivered to Gary Schwartz's chain of retail stores, called The Kathmandu Shop, once a year. The reorder point, without safety stock, is 200 chairs.
Carrying cost is $30 per unit per year, and the cost of a stockout is $80 per chair per year.
Given the following demand probabilities during the lead time, how much safety stock should be carried?
Demand during lead time Probability
0 0.2
100 0.2
200 0.2
300 0.2
400 0.2
The optimal quantity of safety stock which minimizes expected total cost is _ units (enter your response as a whole number).

Answers

Answer 1

Answer:

The optimal quantity of safety stock which minimizes expected total cost is _ units is 100 units.

Explanation:

Incremental Costs would be considered here to evaluate which safety stock level is the best for the company.

The working is as under:

Safety Stock  Carrying Cost      Stock-out Cost                    Total Cost

   0                        0                     (100*0.2 + 200*0.2) * 80         4,800

 100                100*30 = $3000   (100 * 0.2) * 80                        1,600

200               200*30 = $6000   (200 * 0.2) * 80                       3,200

The total cost has started growing as the safety starts growing above the 100 units level. This means that the safety stock must be 100 units as the cost at this level is the lowest to the company.

Answer 2

Inventory is termed as the accounting name of the stock of the goods and services in the economy. This is the produced level of the final goods of the firm.  

100 units are the optimal quantity of safety stock for reducing the anticipated total cost.

Here, incremental costs would be considered to determine whether the level of inventory level is optimum for the firm.

The calculation is as shown below:

Safety Stock  Carrying Cost      Stock-out Cost                    Total Cost

  0                        0                     [tex](100\times0.2 + 200\times0.2) \times 80[/tex]         4,800

100           [tex]100\times30 = \$3000[/tex]                  [tex](100 \times 0.2) \times80[/tex]           1,600

200               [tex]200\times30 = \$6000[/tex]          [tex](200 \times 0.2) \times 80[/tex]            3,200

The overall cost has risen up when the degree of safety rises above 100 units. This indicates that the safety stock must be 100 units because the company's cost becomes the least at this point.

To know more about the inventory and its calculation, refer to the link below:

https://brainly.com/question/15838495


Related Questions

If a stock with a beta of 1.4 is expected to return 18% when Treasury bills yield 6%, what is the expected return on the market portfolio

Answers

Answer:

14.57%

Explanation:

A stock has a beta of 1.4

The expected return is 18%

The risk free rate is 6%

Therefore, the expected return on the market portfolio can be calculated as follows

18%= 6% + 1.4(market return-6%)

18%= 6% + 1.4market return - 8.4

18%= 6-8.4 + 1.4market return

18%= -2.4% + 1.4market return

18%+2.4%= 1.4market return

20.4= 1.4market return

market return= 20.4/1.4

= 14.57%

Hence the expected return on the market portfolio is 14.57%

The following are examples of economic goods except

a. bottled water

b. air

c. household utensils

d. shelter​

Answers

Answer:

The following are examples of economic goods except

a. bottled water

b. air ✔

c. household utensils

d. shelter

✈How?

▶"air" is not a economic goods.It is free to all.

Answer:

The answer is

Explanation:

household utensils. Because they are examples of economic goods.

Hope this helps....

Have a nice day!!!!

3. Sancho deposits $500 in a bank account today which pays 4 percent interest, compounded annually. The amount of interest Sancho earns in year 4 will be:

Answers

Answer:

$84.93

Explanation:

Future value in year 4 =

PV x ( 1 + r)^n

PV = present value = $500

r = 4%

n = 4

$500(1.04)^4 = $584.93

Interest rate = future value - amount invested =  $584.93 - $500 =  $84.93

Marketing can best be thought of as a(n)?

Answers

Complete Question:

Marketing can best be thought of as a(n)

Group of answer choices

A. profit

B. activity

C. need

D. process

Answer:

D. Process.

Explanation:

Marketing can be defined as the process of developing promotional techniques and sales strategies by a firm, so as to enhance the availability of goods and services to meet the needs of the end users or consumers

Hence, marketing can best be thought of as a process.

Generally, marketing comprises of various activities such as creating, communicating, delivering, and exchange of goods and services for a specific amount of money being paid by the customers.

The broker while creating a CMA does not usually consider the full range of data about market conditions and comparable sales that the appraiser must consider and document. Therefore, the broker's opinion of value will be

Answers

Answer:

less reliable than the appraiser's.

Explanation:

in such a scenario the broker's opinion of value will be less reliable than the appraiser's. This is mainly because the broker does not have all the information that the appraiser has and is making his opinion without this information, which may lead to unforeseen consequences that would not otherwise occur if the broker had this information and was able to see a much bigger picture of the situation to incorporate into his opinion.

"A $10,000 municipal bond with 5 years to maturity is purchased in the primary market at 105. The bond is sold after 2 years at 103. The taxable gain or loss is:"

Answers

Answer:

Taxable loss is $200

Explanation:

The cash paid for acquiring the municipal bond is 105% of $10,000 which is $10,500(105%*$10,000.

However, after 2 years the municipal bond was sold at 103% of the face value, in other words, the sales proceeds received is $10,300(103%*$10,000)

Conclusively, the loss on the sale of the municipal bond is the difference between the amount paid initially and the amount received thereafter i.e -$200($10,300-$10,500)

A proposed new investment has projected sales of $515,000. Variable costs are 44 percent of sales, and fixed costs are $128,500; depreciation is $49,750. Prepare a pro forma income statement assuming a tax rate of 24 percent. What is the projected net income?

Answers

Answer:

Net operating income= $83,714

Explanation:

Giving the following information:

Sales= $515,000.

Variable costs are 44 percent of sales

Fixed costs are $128,500

Depreciation is $49,750.

Tax=  24 percent.

Income statement:

Sales= 515,000

Total variable cost= (0.44*515,000)= (226,600)

Gross profit= 288,400

Fixed costs= (128,500)

Depreciation= (49,750)

Operating income= 110,150

Tax= 110,150*0.24= (26,436)

Net operating income= 83,714

___________ links the purchase of an organization's products to support of philanthropic organizations favored by the target market

Answers

Answer:

cause - related marketing

Explanation:

Cause-related marketing is when a charity event is sponsored by two or more companies . The purpose of cause related marketing is to increase the corporate social responsibilities of company supporting this cause.

Cause related marketing involves collaboration between a business that is meant to generate profit and a not for profit organization with a view to benefiting each other. Also, a not for profit organization can create awareness about themselves in terms of their contributions to the society in cause related marketimg.

On November 30, Year 1, Parlor, Inc. purchased for cash at $15 per share all 250,000 shares of the outstanding common stock of Shaw Co. At November 30, Year 1, Shaw's balance sheet showed a carrying amount of net assets of $3,000,000. At that date, the fair value of Shaw's property, plant, and equipment exceeded its carrying amount by $400,000, and the fair value of Shaw's trademark name brand is $75,000. In its November 30, Year 1, consolidated balance sheet, what amount should Parlor report as goodwill

Answers

Answer:

$275,000

Explanation:

Goodwill in business combination arises when the price paid in acquiring a business exceeds the fair value of the acquired business net assets . The fair value is used rather than the carrying amount to ensure fairness and an unbiased result

Workings

Purchase consideration = 250,000*15 =3,750,000

Percentage acquired = 100%

Fair value of net asset = 3,000,000+400,000+75,000= 3,475,000

Goodwill = 3,750,000=3,475,000 =275,000

Two nations, Mars and Venus, each produce food and clothing. The table gives points on each nationâs PPF. The asterisks indicate their current point of production. Which of the following statementsis correct based on the concept of comparative advantage?

Mars Venus
Food Clothing Food Clothing
0 30 0 40
2 24 4 32
4 18 8 24
5 12 12 16
8 6 16 8
10 0 20 0

a. Mars and Venus should continue producing the quantities indicated by the asterisks.
b. Mars should specialize in the production of food.
c. Mars should specialize in the production of clothing.
d.Venus has the comparative advantage in clothing.
e. Mars has an absolute advantage in the production of food.

Answers

Answer:

The correct option is;

c. Mars should specialize in the production of clothing

Explanation:

The given table can be presented as follows;

Mars[tex]{}[/tex]                                                                          [tex]{}[/tex]Venus

Food [tex]{}[/tex] Clothing                                                                 Food [tex]{}[/tex] Clothing

0 [tex]{}[/tex]         30                                                                         0    [tex]{}[/tex]      40

2    [tex]{}[/tex]       24                                                                         4    [tex]{}[/tex]      32

4        [tex]{}[/tex]   18                                                                          8      [tex]{}[/tex]    24

5   [tex]{}[/tex]         12                                                                        12   [tex]{}[/tex]      16

8     [tex]{}[/tex]        6                                                                         16          8

10            0                                                                         20 [tex]{}[/tex]        0

From the attached chart as produced in Excel, the trend lines and their equation for Mars and Venus can be seen

The relationship between Clothing, y and Food, x production for Mars is given as follows;

y = -3·x + 30

The relationship between Clothing, y and Food, x production for Venus is given as follows;

y = -2·x + 40

Therefore since a given decrease in food production results in a higher increase in Cloth production for Mars than for Venus, Mars should specialize in the production of clothing.

Game Play sells gaming systems and allows customers to mix-and-match individual components when placing a system order. Which type of facilities layout would best serve Game Play's production needs? fixed-position process flexibly product office

Answers

Answer:

Process.

Explanation:

Since Game Play sells gaming systems and allows customers to mix-and-match individual components when placing a system order. A process facility layout would best serve Game Play's production needs.

A process facility layout can be defined as the strategic approach or plan which typically involves having the workflow around the production unit.

Generally, in a process facility layout, employees who are having similar job functions or roles are usually grouped together and as such productions are done in phases.

Hence, a customer with preferences to individual components would use a process facility layout.

Tyler cannot afford to hire a sales person for his small business but feels personal selling is the best way to encourage prospects to become customers.You remind him that:_____

Answers

Answer:

the most cost-efficient mode of selling may be to use sales or marketing representatives

Explanation:

Personal selling by Tyler can divert his focus from proper management practices of the firm's activities.

Selling involves constant interaction with the customer and follow up on prospective clients.

This can be stressful and lead to lose of sales revenue through ineffective customer engagement.

Hiring a sales representative is more cost effective because sales representatives are hired on a contract basis with commission paid on performance.

This ensures that a reasonable amount is paid to get execute the sales process.

Consider two points on the production possibilities frontier (PPF): point A, at which there are 50 oranges and 100 apricots, and point B, at which there are 51 oranges and 98 apricots. If the economy is currently at point B, the opportunity cost of moving to point A is

Answers

Answer:

1 orange

Explanation:

Here are the options to this question :

b. 1 orange.

c. 98 apricots.

d. 3 oranges.

The Production possibilities frontiers is a curve that shows the various combination of two goods a company can produce when all of its resources are fully utilised.  

As more quantities of a product is produced, the fewer resources it has available to produce another good. As a result, less of the other product would be produced. So, the opportunity cost of producing a good increase as more and more of that good is produced.

If the economy moves to point A, it would be giving up

51 - 50 = 1 oranges

An economist estimated that the price elasticity of demand for new cars to be 0.87 if the price of cars declines by 40%. One would expect the quantity of new cars to:______

Answers

Answer:

% change in quantity =34.8%

Explanation:

Price elasticity of demand (PED) is the degree of responsiveness of demand to a change in price.  

Where a percentage change in price produces a more than a proportional change in quantity, we say the product is price elastic. On the other hand, where a change in price produces a less than a proportional change in quantity demand, then demand is price inelastic  

PED is computed as follows:  

PED = % change in quantity /% change in Price  

PED = 0.87

% change in Price =  40%

% change in Quantity =?

0.87 = y/40%/

Cross mulitiplying, we have

y = 0.87 × 40 = 34.8

Dividing both sides by 0.87

y =  34.8

% change in quantity = 34.8

% change in quantity =34.8

If a brand or company is trying to repair a damaged reputation with the people it serves, its strategic efforts in digital marketing would align with:_______.
A. Share of Voice.
B. Authority.
C. Favorability.
D. Knowledge.

Answers

Answer:

C. Favorability.

Explanation:

Digital marketing can be defined as an application of a wide range of channels or medium such as mobile devices, internet, social media, software applications, search engines, and a variety of electronic channels to reach out to consumers and potential buyers.

If a brand or company is trying to repair a damaged reputation with the people it serves, its strategic efforts in digital marketing would align with favorability.

Favorability in digital marketing tends to measure the relationship between a business and its customers. The main purpose is to create affinity for a business or making customers feel positive towards a business after viewing an advert.

Alan works as a news anchor for a television network. In addition to his regular pay, at the end of each year, his company pays him and his co-workers additional compensation as a "thank you" for good work. This monetary reward would most likely be categorized as a

Answers

Answer:

Benefit

Explanation:

Benefit is extra payment that an employee collects from an employer. It is paid in addition to the normal compensation that a person receives and serves as a way to improve their welfare and to motivate them to perform better.

Usually benefits are not performance based payment but based on membership of an organisation. They are usually paid seperate from normal compensation.

In this case Alan's company pays him and his co-workers additional compensation as a "thank you" for good work. This is a benefit.

Answer: Benefit

Explanation:

A Benefit is a type of monetary reward that a company may see fit to pay its employees for a good performance during the year and to sometimes express gratitude and appreciation for the hard work done in a period.

The Benefit will act as an incentive to keep the employees more motivated as they will feel appreciated. One of the most common examples of bonuses would be the Christmas/holiday bonus which is likely what Alan and his co-workers receive every end of year.


Entrepreneurs affect the economic decisions a country makes by:

Answers

I inferred from an economic perspective.

Answer:

contributing to the creation of new jobs, new technology, and innovations, while increasing their countries GDP.

Explanation:

This is so because entrepreneurs are usually termed the backbone of every economy. For example, a country's decisions about how much of a product to produce would depend on the number of entrepreneurs it has in the country's economy.

Thus, by contributing to the creation of new jobs, new technology, and innovations, entrepreneurs can shape the decisions of the country's government.

Diners Corporation, a U.S. firm, signs a contract with Essen, A,G., a German firm, to give Essen the right to use Diners' trademark in restaurants in Germany. This is:_______

Answers

Complete Question:

Diners Corporation, a U.S. firm, signs a contract with Essen, A,G., a German firm, to give Essen the right to use Diners’ trademark in restaurants in Germany. This is?

Group of answer choices

a. a distribution agreement.

b. a joint venture.

c. direct exporting.

d. licensing.

Answer:

D. Licensing.

Explanation:

Diners Corporation is a U.S. firm which signed a contract with Essen, A,G., a German firm, to give Essen the right to use Diners' trademark in restaurants in Germany. This is licensing.

Licensing can be defined as a strategic business approach, which involves a company giving permission (license) to another company so it has the right to produce or manufacture its products, usually for a specific amount of money.

Hence, the company being granted a license has the right to use the other company's patent, copyright, design and trademark in its productions.

The act that requires most employers to withhold certain amounts from employees' earnings for contributions to the Social Security and Medicare programs is called the

Answers

Answer:

Federal Insurance Contributions Act

Explanation:

The Federal Insurance Contributions Act refers to a law that establishes the federal taxes that are deducted from employees' salaries to get the funds for social services like Medicare, disability insurance, among others. According to  this, the answer is that the act that requires most employers to withhold certain amounts from employees' earnings for contributions to the Social Security and Medicare programs is called the Federal Insurance Contributions Act.

which strategy is used by firms that believe increasing colume of sales will help the firm more than increasing profits

Answers

Answer:

Sales Orientation

gains tax I) means that the investor doesn't need to pay taxes until the investment is sold. II) allows the investment to grow at a faster rate. III) means that you might escape the capital gains tax if you live long enough. IV) provides a tax shelter for investors.

Answers

Answer:

I), II), IV)

Explanation:

Deferral has a dictionary meaning of halting things for a while up till a certain future event.

Deferral of capital gains tax means not paying the capital gains tax up till the actual sales is made of investments attracting the capital gains tax.

It further helps the investor to focus on returns rather than the capital gains tax to be attracted and paid, which also allows the investment to grow fully.

It is a form of tax benefit to investors thus, it acts as a shelter.

Further, in no terms deferral of capital gains tax shall mean non payment of tax, as once the investment is sold the tax has to be deposited.

Randy and Kim divided their 30-acre property into three 10-acre parcels (lots A, B, and C). A and C can only access the public road through B. The buyers of A and C will probably be granted what type of easement by court action?

Answers

Answer: Easement by necessity

Explanation: Easement may be referred to as a right granted to an individual to make use of another person's property or land such that the individual would not be penalized for trespassing. The easement by necessity is usually granted by a legal body, that is a court of law, granting an individual a legal pass or authority to move or travel over another person's land without penalty. This is uaually the case when it becomes a must and there is no other means by which the individual can access his or her own property except by passing or traveling through another property. In the scenario above, the owners of land A and C will be granted easement of necessity which will allow them to travel through land B without being penalized in other to access their own property.

Adison Winery had beginning long-term debt of $39,476 and ending long-term debt of $44,875. The beginning and ending total debt balances were $48,835 and $53,888, respectively. The company paid interest of $4,327 during the year. What was the company's cash flow to creditors?

Answers

Answer:

The answer is -$1,072

Explanation:

The company's cash flow to creditors is the total amount of money paid to the creditors. It is a cash outflow because money goes out of the company to pay the creditors.

Company's cash flow to creditors = Interest paid - (ending long-term debt - beginning long-term debt)

$4,327 - ($44,875 - $39,476)

$4,327 - $5,399

= -$1,072

Note: The answer is in negative.

The economy is in a recession and the government wants to increase output. If the multiplier equals 3 and the government increases spending by 250, how much will output increase by

Answers

Answer:

The answer is 750

Explanation:

When government increases its spending, this increase in spending leads to increases in income for households which cumulatively increase the national income, this effect is known as multiplier effect.

Government has increased its spending by 250 while multiplier effect is 3.

Therefore, output will increase by 750(250 x 3)

Regulators in different countries have proposed various regulations for product labeling. All of the following statements pertaining to such regulations are true except:A) mandatory health warnings on tobacco products are required in most countries.B) the American Automobile Labeling Act clarifies the country of origin as well as the final assembly point.C) in 2008, the United States enacted a country of origin labeling (COOL) law.D) the use of terms "light" and "natural" are allowed on labels only in the United States.E) McDonald's is posting nutrition information on all food packaging and wrappers in selected markets.

Answers

Answer:

D) the use of terms "light" and "natural" are allowed on labels only in the United States.

Explanation:

As the term "light" has a dictionary meaning of a very low in weight as compared to similar products in the market, is a very basic term to define the nature of product.

No labelling regulator has claimed that this kind of labelling is only allowed in the United States.

Further, the dictionary meaning of the word "natural" with respect to products shall mean, one that is not composed of high chemicals or transformation, but the major essence is extracted from the nature, i.e. from the environment.

Thus, the word natural can again be used by any country to label their product and in no manner is restricted to the United States.

Seventy-five percent of the research and development and selling expenses were traceable to Askin. Profit before taxes for the Askin product, per life-cycle income statements, is:

Answers

Answer: $475,000

Explanation:

75% of both the research and development and selling expenses were traceable to Askin.

= 75% * (1,170,000 + 130,000)

= $975,000

Profit before taxes for Askin = Askin Gross Profit - Share of expenses

= 1,400,000 - 975,000

= $475,000

If a government uses monetary policy to alter the exchange rate, then it cannot at the same time use monetary policy to address issues of ______________________.

Answers

Answer:

inflation or recession

Explanation:

According to Tradeoffs of Soft pegs and Hard peg, which deals with exchange rates policies of a nation, it goes that, in a situation whereby a government uses monetary policy to alter the exchange rate, then it cannot at the same time use monetary policy to address issues of INFLATION OF RECESSION. This is because the altering exchange rate by monetary policy is Soft Peg while addressing the issue of inflation it recession by monetary policy is Hard peg.

You have been hired as a marketing consultant by Widget World to evaluate the relative strengths of their 38 current products. Widget management wants to know which products should be continued and which ones should be dropped. Which of the following sequences would most likely be best suited for presenting your recommendations?
A. Chronological.
B. Spatial.
C. Alphabetical.
D. Qualitative.

Answers

Answer:

D. Qualitative.

Explanation:

Since in the question it is mentioned that the evaluation of the 38 current products should be done and analyzed them which products should be continued and which one is dropped

here 38 products shows the number of products

So the best suited is qualitative as it reflects the quality of each products that give results into continuation or dropped.

Hence, the correct option is D. Qualitative

Another reason fueling the boom in fast-growing technology services is _____, which, when done right, can virally spread awareness of a firm with nary a dime of conventional ad spending.

Answers

Available options are:

A. Esako and M-Pesa

B. Big data and Business analytics

C. Social media

D. Sproxil

Answer:

Social media

Explanation:

Social media is an internet-based or online platform that allows different registered users to share various forms of information and content, among other users, from anywhere across the globe.

Hence, given the available options, Another reason that is fueling the boom in fast-growing technology services is SOCIAL MEDIA, which, when done right, can virally spread awareness of a firm with nary a dime of conventional ad spending.

A registered representative purchased two tickets to a concert for which he paid $175 per ticket. If the face value of the tickets is $95 per ticket, the RR may:

Answers

Answer:

The RR may decide not to give any tickets to a customer

Explanation:

Based on the information given about the registered representative the registered representative may decide NOT L to give any tickets to a customer reason been that the face value which is $95 per ticket for two person when calculated will give us the amount of $190($95 ×2) which is higher than the actual value or amount he paid for the two ticket calculated as ($175×2) which gave us $350 given us a difference of $160($350-$190).

Therefore Based on this registered representative may NOT give any tickets to a customer.

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