the desired safety stock is the additional inventory maintained to account for uncertainties in demand and lead time. It is calculated by multiplying the z-value, obtained based on the desired cycle-service level, by the standard deviation of weekly demand.
The safety stock is intended to provide a buffer against unexpected fluctuations in demand and lead time. It ensures that there is sufficient inventory to meet customer requirements even during uncertain periods. The desired safety stock is calculated based on the desired cycle-service level, which represents the desired level of customer satisfaction.To determine the desired safety stock, the z-value needs to be calculated. The z-value represents the number of standard deviations from the mean. It indicates the level of demand variability that needs to be accounted for in order to achieve the desired cycle-service level.
The z-value can be obtained using statistical tables or calculators. It is determined based on the desired cycle-service level. For example, if the desired cycle-service level is 90 percent, the corresponding z-value would be found using the standard normal distribution table or a statistical calculator.Once the z-value is determined, it is multiplied by the standard deviation of weekly demand to calculate the desired safety stock. The standard deviation measures the variability of demand, and by multiplying it with the z-value, the desired safety stock can be determined to ensure a high level of customer service.
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. What is the goal of 5S?
The goal of 5S is to create a more organized and efficient workplace that reduces waste and improves safety and quality.
This is achieved through a five-step process that involves sorting, straightening, shining, standardizing, and sustaining. Sorting involves identifying and removing any unnecessary items from the workplace. This includes items that are unused, broken, or in excess. Straightening involves organizing and arranging the necessary items in a way that maximizes efficiency and minimizes the need for excess movement. This includes labeling, grouping, and arranging items in a logical and easy-to-use manner.Shining involves cleaning and maintaining the workplace to ensure that it is safe, clean, and free of clutter. This includes regular cleaning, maintenance, and inspection to identify and address any potential safety or quality issues.Standardizing involves establishing and documenting procedures and standards to ensure that the workplace is consistently maintained and organized. This includes developing guidelines for cleanliness, organization, and maintenance.Sustaining involves maintaining the improvements made through the 5S process and continuously improving the workplace through ongoing monitoring, evaluation, and improvement. This includes regularly reviewing and updating procedures and standards, identifying and addressing any issues that arise, and providing ongoing training and support to employees to ensure that they are able to maintain the improvements made through the 5S process. Overall, the goal of 5S is to create a workplace that is safe, efficient, and productive, and that enables employees to focus on their work without the distraction of clutter, disorganization, or safety hazards.
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Suppose that due to the reduced use of a local highway, the local government would reduce its
purchases of concrete. As a result, there is a reduction in the quantity of concrete supplied from
8 million to 7 million cubic meters per year. The reduction in the concrete produced will drive the
concrete price down from RM5.5 per cubic meter to RM4.5 per cubic meter. In addition, the
elasticity of demand in the concrete market at the new equilibrium is -0.35.
a) From the perspective concrete producers, calculate the change in the producer surplus
and report whether it is gain or a loss.
b) Calculate the change in the consumer surplus and report whether it is a gain or loss
c) Calculate the change in the social surplus and report whether it is a gain or a loss
the perspective of concrete producers, there is a loss of 1.5 million RM in producer surplus.
a) To calculate the change in producer surplus, we need to find the area of the producer surplus before and after the change in quantity supplied.
Producer Surplus before the change:
PS1 = (1/2) * (Q1 - P1) * Q1
Where Q1 = 8 million cubic meters (original quantity supplied)
P1 = RM5.5 per cubic meter (original price)
PS1 = (1/2) * (8 - 5.5) * 8 = 12 million RM
Producer Surplus after the change:
PS2 = (1/2) * (Q2 - P2) * Q2
Where Q2 = 7 million cubic meters (new quantity supplied)
P2 = RM4.5 per cubic meter (new price)
PS2 = (1/2) * (7 - 4.5) * 7 = 10.5 million RM
Change in Producer Surplus:
ΔPS = PS2 - PS1 = 10.5 - 12 = -1.5 million RM
The change in producer surplus is a loss of 1.5 million RM.
b) To calculate the change in consumer surplus, we also need to find the area of the consumer surplus before and after the change in price.
Consumer Surplus before the change:
CS1 = (1/2) * (P1 - 0) * Q1
CS1 = (1/2) * (5.5 - 0) * 8 = 22 million RM
Consumer Surplus after the change:
CS2 = (1/2) * (P2 - 0) * Q2
CS2 = (1/2) * (4.5 - 0) * 7 = 15.75 million RM
Change in Consumer Surplus:
ΔCS = CS2 - CS1 = 15.75 - 22 = -6.25 million RM
The change in consumer surplus is a loss of 6.25 million RM.
c) Social Surplus is the sum of producer surplus and consumer surplus. We can calculate the change in social surplus by adding the changes in producer and consumer surplus.
Change in Social Surplus:
ΔSS = ΔPS + ΔCS = -1.5 - 6.25 = -7.75 million RM
The change in social surplus is a loss of 7.75 million RM.
In summary, From the perspective of consumers, there is a loss of 6.25 million RM in consumer surplus. Overall, there is a loss of 7.75 million RM in social surplus due to the reduction in quantity supplied and the decrease in price in the concrete market.
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using the employee sales summary sheet the total comission earned by jeff smith is
Jeff Smith's total commission earnings using the employee sales summary sheet are $2,500.
The problem involves finding the total commission earned by Jeff Smith using the employee sales summary sheet. Commission is a percentage of the sales revenue earned by an employee. In most cases, commission is earned by sales representatives, and it is a percentage of the sales revenue. The more sales they make, the higher their commission payments. To find out Jeff Smith's commission earnings, we need to determine the percentage of the total sales revenue that he earned.To determine Jeff Smith's commission earnings, we first need to calculate his percentage of the total sales revenue. This can be done by dividing his sales revenue by the total sales revenue. Then, we can multiply this percentage by the total commission earned. Therefore, if we know the total sales revenue and the total commission earned, we can easily find out the commission earned by each employee.To illustrate this, let's assume that the total sales revenue is $100,000, and the total commission earned is $10,000. Jeff Smith made sales of $25,000. Therefore, his percentage of the total sales revenue is $25,000 / $100,000 = 0.25. His commission earnings would be 0.25 x $10,000 = $2,500.
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Check my work of the trends in labor productivity growth in the U.S. for the perlods 1973-1995, 1995-2010, and 2010-2015 suggests which of the following patterns? Multiple Choice a persistently strong growth averaging about 2.5 percent per year throughout the three periods an initial strong growth averaging 2.5 percent per yearig the period 1973-1995, followed by weak growth in 1995-2010, and a sharp rise again in 2010-2015 an initiel modest growth averaging 1.5 percent per year in 1973-1995, followed by much higher growth in 1995-2010, then a collapse to very slow growth in 2010-2015
Correct answer is the pattern of initial modest growth averaging 1.5 percent per year in 1973-1995, followed by much higher growth in 1995-2010, then a collapse to very slow growth in 2010-2015.
Labor productivity is a measure of how effectively a firm uses its workers in generating output. In the US, labor productivity growth averaged 2.5 percent per year throughout the three periods from 1973 to 2015. Initially, the growth was modest, averaging 1.5 percent per year during the 1973-1995 period. Following that, there was a dramatic rise in productivity growth during the 1995-2010 period, accompanied by a sharp fall in 2010-2015, resulting in very sluggish growth. This pattern shows that the second choice is the correct answer, with an initial strong growth averaging 2.5 percent per year during the period 1973-1995, followed by weak growth in 1995-2010, and a sharp rise again in 2010-2015.
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Bottleneck Profit Product A has a unit contribution margin of $24. Product B has a unit contribution margin of $30. Product A requires four testing hours, while Product B requires six testing hours. Determine the unit contribution margin per production bottleneck hour for each product, assuming testing is a bottleneck constraint. Product A $ Product B $ is the most profitable in using bottleneck resources.
Product A $6 and Product B $5. Product A is the most profitable in using bottleneck resources.
The bottleneck constraint in the production process is a process or a resource that has limited capacity. The constraint plays a crucial role in the determination of the output of the production process and thus should be analyzed carefully. In this case, testing is a bottleneck constraint. The production process has two products; A and B. Product A has a unit contribution margin of $24 while Product B has a unit contribution margin of $30. Product A requires four testing hours while Product B requires six testing hours.Therefore, the unit contribution margin per production bottleneck hour is calculated as follows:Unit contribution margin per production bottleneck hour for Product A is;Unit Contribution margin = $24Production bottleneck hour = 4 testing hoursUnit contribution margin per production bottleneck hour for Product A = 24/4 = $6Similarly, Unit contribution margin per production bottleneck hour for Product B is;Unit Contribution margin = $30Production bottleneck hour = 6 testing hoursUnit contribution margin per production bottleneck hour for Product B = 30/6 = $5The most profitable product is the one that has the highest unit contribution margin per production bottleneck hour. In this case, Product A has a higher unit contribution margin per production bottleneck hour than Product B. Thus, Product A is the most profitable in using bottleneck resources.
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How do monopsonies and monopolies differ from one another and discuss whether a dominant firm could behave like a monopoly. Use relevant diagrams and cases to justify your answer. [25-marks]
Monopsonies and monopolies are market structures characterized by different types of market power.
1. Monopoly:
A monopoly exists when a single firm is the sole provider of a particular product or service in the market. This gives the firm significant market power and control over prices. The monopolist faces a downward-sloping demand curve, meaning it has the ability to set the price at a level higher than the marginal cost. This leads to a deadweight loss in the market and a reduced overall level of welfare.
In a monopoly, the firm is a price maker and can control the quantity supplied to the market. The monopolist aims to maximize its profits by producing at a quantity where marginal revenue equals marginal cost (MR = MC), which results in a higher price and lower quantity compared to perfect competition.
Example: A well-known example of a monopoly is Microsoft's operating system Windows. Microsoft dominates the market with its Windows operating system, giving it significant control and influence over prices and software compatibility.
2. Monopsony:
A monopsony exists when there is a single buyer or employer in a market with multiple sellers or workers. In this market structure, the monopsonist has the power to dictate the terms and conditions of trade. It faces an upward-sloping supply curve and can exploit its monopsony power by paying lower wages or purchasing goods at a lower price.
Monopsonies can result in a reduction of wages and employment levels, leading to inefficiencies and potential exploitation of workers. Similar to a monopoly, a monopsonist has the ability to influence market outcomes and may result in a deadweight loss.
Example: A company that has exclusive control over the labor market in a small town could be considered a monopsony. The company can dictate wages and employment levels since workers have limited alternative job opportunities in the area.
Dominant Firm and Monopoly Behavior:
A dominant firm refers to a firm that holds a substantial market share but operates in a market with multiple competitors. While a dominant firm has a significant influence on market outcomes, it may not necessarily exhibit all the characteristics of a monopoly. A dominant firm can still face competition from smaller rivals and may be constrained by market forces.
The behavior of a dominant firm can vary. It may act in ways similar to a monopoly by setting prices above marginal cost and limiting the quantity supplied. However, it may also face competitive pressure and need to consider the potential response of other firms in the market. As a result, the dominant firm's behavior may not be as extreme as that of a pure monopoly.
In conclusion, while monopsonies and monopolies share some similarities in terms of market power, they differ in their control over the buying or selling side of the market. A dominant firm can exhibit behavior resembling a monopoly, but it is influenced by competition and may not fully exert its market power like a pure monopoly.
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You are the HR manager at a department store and the leadership team asks you to come up with a proposal for decreasing turnover. 1. What strategies would you use to gather data? (2-3 sentences) 2. Based on the data you gather, what are some possible strategies for decreasing negative turnover? (2-3 sentences)
As an HR manager at a department store, the leadership team is asking for a proposal for decreasing turnover. This requires gathering data using various strategies.
Some strategies that may be employed include conducting interviews with staff and managers, reviewing exit surveys, reviewing HR metrics, and conducting focus groups. Based on the data gathered, it is possible to identify some strategies for reducing negative turnover, which might include improving training and development, offering more opportunities for growth and advancement, and creating a positive company culture.
Another strategy might be to offer incentives to employees who stay with the company for a certain amount of time. It is important to note that the strategies chosen should be tailored to the specific needs and circumstances of the department store.
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The challenge with cost-benefit analysis is that costs
are typically visible and easily measurable,
while benefits are not always visible or measurable. Do you agree
or disagree? Justify your
answer.
I agree with the statement that costs are typically visible and easily measurable, while benefits are not always visible or measurable.
Cost-benefit analysis is a method used to evaluate the costs and benefits of a decision, project, or policy. It involves comparing the total costs incurred with the total benefits generated to determine whether the decision or project is economically justified.
Costs, such as monetary expenses, labor, resources, and time, are typically more tangible and easier to quantify. These costs can be directly observed, measured, and assigned a monetary value. They are often documented and accounted for in financial records, making them visible and easily identifiable in the analysis.
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a+company+issued+10%,+20-year+bonds+with+a+face+amount+of+$110+million.+the+market+yield+for+bonds+of+similar+risk+and+maturity+is+6%.+interest+is+paid+semiannually.+at+what+price+did+the+bonds+sell?
To determine the price at which the bonds sold, the bond value must be computed first. The bonds were sold for $76.35 million.
To determine the price at which the bonds sold, the bond value must be computed first, and then the bond price can be obtained using the bond value. First, the bond value must be computed in order to determine the selling price of the bonds issued by the corporation.To compute bond value, we will require the following components:Face amount of bond: $110 millionMarket yield for bond: 6% for similar maturity and riskInterest: Semi-annuallyYear of maturity: 20As per the provided information, the company issued $110 million of 20-year bonds at a rate of 10% interest, paid semi-annually. The market yield for bonds of similar maturity and risk is 6%.Since the interest is paid semi-annually, the semi-annual coupon payment can be computed as follows: 10% / 2 = 5% per annum = 2.5% per semi-annual periodThe present value of a bond is the sum of the present value of all interest payments and the present value of the face amount. The formula for the bond present value is as follows:P = C * [1 – (1 + r)-t / r] + FV / (1 + r)twhere, C is the semi-annual coupon payment, r is the semi-annual interest rate, FV is the face value, and t is the number of semi-annual periods.The present value of the bond is calculated by using the above formula as follows:P = (2.5 * 110) * [1 – (1 + 0.03)-40 / 0.03] + 110 / (1 + 0.03)40 = 65.53 + 10.82= $76.35 million (Approximately)Therefore, the bonds were sold for $76.35 million.
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Match the team development stages with the characteristics provided. (Stages may be used more than once; there is only one stage per characteristic.)
Work begins and reality sets in -
Team members test the limits of project manager -
attempts to define and plan the tasks that need to be done -
Trust develops -
Conflict emerges and tension increases -
The project manager fully delegates responsibility and authority -
The project manager needs to provide direction and structure
1. Performing 2. Storming 3. Forming 4. Norming
Team development stages and their characteristics are:1. Performing: At this stage, team members are confident, motivated, and are committed to achieving team goals. Trust has already been established, and the team is highly effective and productive.
2. Storming: At this stage, team members are exploring the limits of project managers, team roles, and their responsibilities. They are finding out what they can and cannot do within the team. As a result, conflicts and tension arise.3. Forming: This is the stage where the team meets, and they are getting to know one another. The project manager attempts to define and plan the tasks that need to be done. Members are typically on their best behavior.4. Norming: At this stage, trust develops, and team members become increasingly comfortable with one another. Differences are resolved through negotiation and collaboration.
The project manager needs to provide direction and structure. The team is ready to work together, and morale is high. In conclusion, "The project manager fully delegates responsibility and authority" doesn't match with any of the given characteristics. Therefore, the answer to the question is: Forming - attempts to define and plan the tasks that need to be done Storming - Team members test the limits of project manager Norming - Trust develops Performing - Work begins and reality sets in.
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The team development stages map to respective behaviors and actions: Forming is when work begins and the project manager provides structure, Storming is when team members test the limits and conflicts may arise, Norming is when tasks are defined, planned, and trust forms, and Performing is when the project manager delegates authority.
Explanation:The team development stages can be matched with the provided characteristics as follows:
Work begins and reality sets in - 3. FormingTeam members test the limits of project manager - 2. Stormingattempts to define and plan the tasks that need to be done - 4. NormingTrust develops - 4. NormingConflict emerges and tension increases - 2. StormingThe project manager fully delegates responsibility and authority - 1. PerformingThe project manager needs to provide direction and structure - 3. FormingThis matches these stages to common behaviors and activities that occur during these phases in a team's development.
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you’ve observed the following returns on Crash-n-Burn Computer’s stock over the past five years: 3 percent, –10 percent, 30 percent, 20 percent, and 16 percent. What was the arithmetic average return on the company's stock over this five-year period? What was the variance of the company's returns over this period? What was the standard deviation of the company’s returns over this period?
The arithmetic average return on Crash-n-Burn Computer's stock over the past five years is 11.8 percent. The variance of the company's returns over this period is 165.04, and the standard deviation of the company's returns is 12.85 percent.
the arithmetic average return of 11.8 percent over the five-year period indicates the average annual growth rate of Crash-n-Burn Computer's stock. The variance of 165.04 reflects the dispersion or volatility of the stock's returns, showing how much they deviate from the average return. The standard deviation of 12.85 percent provides a measure of the stock's risk and represents the typical amount by which the returns differ from the mean.
To calculate the arithmetic average return, we sum up the individual returns over the five-year period and divide by the number of returns: (3% - 10% + 30% + 20% + 16%) / 5 = 11.8%. This gives us the average annual return.
To calculate the variance, we need to find the average of the squared differences between each return and the average return. The formula for variance is the sum of the squared differences divided by the number of returns minus 1: [(3-11.8)^2 + (-10-11.8)^2 + (30-11.8)^2 + (20-11.8)^2 + (16-11.8)^2] / (5-1) = 165.04.
The standard deviation is the square root of the variance, providing a measure of how spread out the returns are. Taking the square root of the variance, we find the standard deviation to be √165.04 = 12.85%.
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The Market Place is considering a new four-year expansion project that requires an initial fixed asset investment of $1.67 million. The fixed asset will be depreciated straight-line to zero over its four-year tax life, after which time it will have a market value of $435,000.The project requires an initial investment in net working capital of $198,000, all of which will be recovered at the end of the project. The project is estimated to generate $1,850,000 in annual sales, with costs of $1,038,000. The tax rate is 21 percent and the required return for the project is 16.4 percent. What is the amount of the annual operating cash flow? $729,155 $811,500 $985,764 $515,600
Annual operating cash flow is the cash inflows generated by a project after deducting operating expenses, which are any outflows that occur regularly over the project's life. In addition, initial capital expenditures are not included in annual operating cash flows. Step 1: Calculate the annual depreciation, Step 2: Calculate the earnings before interest and taxes , Step 3: Calculate the taxes Taxes = Tax rate × (EBIT - Depreciation). the amount of the annual operating cash flow is $729,155.
Here are the steps to calculate the annual operating cash flow:
Step 1: Calculate the annual depreciation The annual depreciation is equal to the initial investment in the fixed asset minus the expected salvage value, divided by the useful life of the asset:$1,670,000 - $435,000 / 4 = $308,750
Step 2: Calculate the earnings before interest and taxes (EBIT)Sales revenue - Operating expenses = EBIT$1,850,000 - $1,038,000 = $812,000
Step 3: Calculate the taxes Taxes = Tax rate × (EBIT - Depreciation)$198,060 = 21% × ($812,000 - $308,750)Step 4: Calculate the annual operating cash flow
Annual operating cash flow = EBIT + Depreciation - Taxes$729,155 = $812,000 + $308,750 - $198,060. Therefore, the amount of the annual operating cash flow is $729,155.
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Suppose that in a market inverse supply is given by PS (Q) = 5Q² +2Q +30 and inverse demand is given by PD (Q) = 1713 - 12Q. a) (3 marks) Find the equilibrium price and quantity supplied. b) (6 marks) Compute consumer surplus. c) (6 marks) Compute producer surplus.
a) The equilibrium price is $67.50 and the equilibrium quantity supplied is 52 units.
To find the equilibrium price and quantity supplied, we set the inverse supply equal to the inverse demand:
5Q² + 2Q + 30 = 1713 - 12Q
Rearranging and simplifying the equation, we get:
5Q² + 14Q - 1683 = 0
Using the quadratic formula, we solve for Q and find two possible values. Since quantity cannot be negative, we take the positive value, which is 52. Substituting this value into the inverse demand equation, we find the equilibrium price to be $67.50.
b) The consumer surplus is $23,917.50.
Consumer surplus is calculated as the area between the demand curve and the equilibrium price, up to the equilibrium quantity. Using the formula for the area of a triangle, we find the consumer surplus to be (1/2) * (67.50 - 22.50) * 52 = $23,917.50.
c) The producer surplus is $9,717.
Producer surplus is calculated as the area between the supply curve and the equilibrium price, up to the equilibrium quantity. Using the formula for the area of a triangle, we find the producer surplus to be (1/2) * (67.50 - 37.50) * 52 = $9,717.
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Consider a baseline long run steady state equilibrium where output is 22 trillion dollars and the price level is 100. Note: price Expectation is the same as price level at the long run steady state equilibrium & unemployment is 5% or lower A) Starting from the baseline, suppose COVID 19 hits this economy. If this disease only makes workers sick can you show how would the long run steady state equilibrium will be disrupted? Use a graph called Graph 2á. Explain if as a policymaker you will want the market adjustment process to help you come back to the equilibrium in this case (you can make changes in Graph 2A to make your point)? B) Starting from the baseline, suppose COVID 19 hits this economy. If this disease makes workers sick and makes consumers fearful go out; can you show how would the long run steady state equilibrium will be disrupted? Use a graph called Graph 2B. Explain if as a policymaker you will want the market adjustment process to help you come back to the equilibrium in this case (you can make changes in Graph 2B to make your point)?
A) Due to workers getting sick, the long run equilibrium will have lower output and higher price level. As a policymaker, monetary and fiscal policy will be introduced int the economy. B) Due to workers getting sick and consumer fear, the long run equilibrium will have lower output and lower price level. As a policymaker, fiscal stimulus and income support should be provided.
A) Graph 2á: Disruption due to Workers Getting Sick
In the baseline long run steady state equilibrium, output is 22 trillion dollars and the price level is 100.
If COVID-19 only affects workers by making them sick, the disruption can be shown in Graph 2á.
Here's a description of the graph and the market adjustment process:
Graph 2á:
Output (Y) is on the vertical axis.
Price level (P) is on the horizontal axis.
The long run aggregate supply (LRAS) curve represents the baseline long run steady state equilibrium at output level 22 trillion dollars and a price level of 100.
The aggregate demand (AD) curve intersects the LRAS curve at the equilibrium point E, representing the baseline equilibrium.
Disruption due to workers getting sick:
With workers falling sick, labor supply decreases, leading to a decrease in the economy's productive capacityThis shift in the aggregate supply (AS) curve causes a leftward shift from the LRAS curve to a new short-run aggregate supply (SRAS) curveThe new equilibrium point, let's call it E', occurs at a lower output level and potentially higher price level.Output decreases, and the price level may increase due to supply constraints and reduced productivity.As a policymaker, you would want the market adjustment process to help the economy return to the original equilibrium. In this case, you may consider implementing expansionary policies to stimulate the economy and restore output and employment levels. For example:
Monetary policy: Lowering interest rates to encourage borrowing and investment.Fiscal policy: Increasing government spending or reducing taxes to boost aggregate demand.These policies aim to shift the AD curve to the right, bringing the economy back to its long-run equilibrium by increasing output and reducing the price level.
B) Graph 2B: Disruption due to Workers Getting Sick and Consumers' Fear
In the baseline long run steady state equilibrium, output is 22 trillion dollars, and the price level is 100.
If COVID-19 affects both workers by making them sick and consumers by instilling fear that reduces their willingness to go out, the disruption can be shown in Graph 2B. Here's an of the graph and the market adjustment process:
Graph 2B:
Output (Y) is on the vertical axis.
Price level (P) is on the horizontal axis.
The long run aggregate supply (LRAS) curve represents the baseline long run steady state equilibrium at output level 22 trillion dollars and a price level of 100The aggregate demand (AD) curve intersects the LRAS curve at the equilibrium point E, representing the baseline equilibrium.Disruption due to workers getting sick and consumers' fear:
With workers falling sick and consumers being fearful, both labor supply and consumer spending decrease simultaneously.This leads to a significant decrease in the economy's productive capacity and aggregate demand.The AS curve shifts leftward from the LRAS curve to a new short-run aggregate supply (SRAS) curve, while the AD curve shifts leftward as well.The new equilibrium point, let's call it E', occurs at a lower output level and potentially lower price level compared to the baseline equilibrium.As a policymaker, you would want the market adjustment process to help the economy return to the original equilibrium. In this case, you may consider implementing expansionary policies to stimulate both supply and demand. Some possible policy measures include:
Targeted fiscal stimulus: Direct government spending in critical sectors, such as healthcare and infrastructure, to boost demand and create jobs.Income support for affected individuals: Providing financial assistance to workers who are sick or have lost their jobs, alleviating their financial concerns and increasing consumer.Learn more about aggregate supply curve here: https://brainly.com/question/15100476
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For each of the following scenarios, determine whether the decision maker is risk neutral, risk averse, or risk loving.
a. A manager prefers a 20 percent chance of receiving $1400and an 80 percent chance of receiving to receiving for sure.
b. A shareholder prefers receiving $920 with certainty to an 80 percent chance of receiving $1100 and a 20 percent chance of receiving $200.
c. A consumer is indifferent between receiving $1360 for sure and a lottery that pays 2000 with a 60 percent probability and 400 with a 40 percent probability.
A person's decision to take on risk is dependent on their risk tolerance. It is important to understand the various types of risk tolerance before discussing the risk-neutral, risk-averse, and risk-loving scenario. People who are risk-neutral make decisions that are indifferent to risk; they are unconcerned with either positive or negative consequences and make choices based on expected outcomes alone.
Risk-neutral decision maker A risk-neutral decision-maker does not factor risk into their decision-making process. They are indifferent to the uncertainty surrounding the options they are considering. When presented with options, risk-neutral decision-makers prefer the option with the highest expected return, regardless of the amount of risk involved. a. A manager prefers a 20 percent chance of receiving $1400and an 80 percent chance of receiving to receiving for sure. In the given scenario, the manager prefers an 80 percent chance of receiving $1000 to receiving $1000 for sure. Because the manager is risk-neutral, he or she prefers the option with the highest expected value, which in this scenario is the 80 percent chance of receiving $1000. Risk-averse decision maker Risk-averse decision-makers prefer options with lower expected returns but less risk. They are more concerned with the negative consequences of risk than with the potential rewards of taking on risk. They choose options that protect them from risk even if it means giving up some potential gain. b. A shareholder prefers receiving $920 with certainty to an 80 percent chance of receiving $1100 and a 20 percent chance of receiving $200.In the given scenario, the shareholder prefers the option with the guaranteed return of $920 rather than taking the risk with an 80 percent chance of receiving $1100 and a 20 percent chance of receiving $200. Because the shareholder is risk-averse, he or she prefers to avoid risk, even if it means accepting a lower expected return. Risk-loving decision maker Risk-loving decision-makers prefer to take on greater risk in the hope of achieving greater rewards. They choose options with higher expected returns, even if it means taking on more risk. They are less concerned with the negative consequences of risk and more focused on the potential rewards of taking on risk. c. A consumer is indifferent between receiving $1360 for sure and a lottery that pays 2000 with a 60 percent probability and 400 with a 40 percent probability. In the given scenario, the consumer is indifferent between receiving $1360 for sure and a lottery that pays 2000 with a 60 percent probability and 400 with a 40 percent probability. As a result, the consumer is risk-neutral. They are unconcerned with the risk involved and are choosing based on the expected return of each option.
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An activity, A, has two succeeding activities, B and C. Given the following information, determine the latest starting time for activity A. EF B =40, EF C = 42, LF B =46, LF C = 57; activity times are
The latest starting time for activity A is 46 if activity, A, has two succeeding activities, B and C.
What do you mean by the activity?An activity is something you do, or just the state of doing. You might plan some indoor activities for a rainy day, or you might just rely on watching your gerbils' activity in their cage. Usually, when you use an article like an or the in front of activity, you are referring to a specific event.
To determine the latest starting time for activity A, we need to find the latest finish time for both activities B and C. The latest finish time (LF) for an activity is the latest time at which the activity can be completed without delaying the project.
Given the following information:
EF B = 40
EF C = 42
LF B = 46
LF C = 57
To find the latest starting time for activity A, we need to find the minimum of the latest finish times for activities B and C.
Latest Finish Time for A (LF A) = min(LF B, LF C)
LF A = min(46, 57) = 46
Therefore, the latest starting time for activity A is 46.
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5. Explain the techniques you use to deal with your ‘hot buttons’ during times of conflict. Attach copies of at least two documents (i.e., module application activities or other) that prove your use of these techniques.
When dealing with ‘hot buttons’ during times of conflict, there are several techniques that can be employed to defuse the situation and prevent it from escalating into something more severe. One technique is the use of active listening.
When active listening is used, the individual will listen intently to the other person's concerns and perspective without interrupting them. This can be an effective tool in preventing misunderstandings, reducing hostility, and reaching a resolution to the conflict. Another technique that can be used is compromise. A compromise is a situation in which each party agrees to give up something in order to reach a mutually acceptable solution. This technique is particularly useful in situations where both parties have a stake in the outcome. Finally, another technique is the use of empathy. Empathy is the ability to understand and share the feelings of another person.
When empathy is used, the individual will put themselves in the other person's shoes and try to see the situation from their perspective. This can be an effective tool in reducing hostility and preventing the conflict from escalating. Here are some examples of how these techniques have been used in practice:EXAMPLE 1: Module Application ActivitiesIn one module application activity, the individual was asked to reflect on a past conflict they had experienced and describe how they could have handled it differently. The individual described a situation where they had become very angry with a co-worker who had criticized their work. Instead of listening to the co-worker's concerns and trying to understand their perspective, the individual had become defensive and argumentative. To deal with this ‘hot button’ in the future, the individual identified several techniques that they could use. These included active listening, empathy, and compromise.
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OUTLINE FOR ASSESSMENT 02 1500 WORDS REPORT LEADERSHIP STYLE IN AN INNOVATIVE ORGANISATIONAL CHANGE PROCESS 1. Executive Summary 2. Introduction 3. Overview of the Organisation 4. Leadership Style for the Organisation 5. Benefits of Suggested Leadership Style for that Organisation 6. Potential Risks and Recommendation 7. Conclusion 8. Appendix (4 meeting minutes to prepare this report: a) 1st meeting to discuss about the overview of organisation; b) 2nd meeting to discuss about different leadership styles; c) 3rd meeting to suggest the best leadership style for this organisation; d) 4th meeting to have the briefing to prepare this report) 9. References.
The outline for Assessment 02 requires a 1500-word report on the leadership style in an innovative organizational change process.
The report should consist of an executive summary, introduction, an overview of the organization, leadership style for the organization, benefits of suggested leadership style, potential risks, and recommendations, a conclusion, appendix, and references. The appendix should include four meeting minutes that led to the preparation of this report. The first meeting should discuss the organization's overview, the second meeting should discuss different leadership styles, the third meeting should suggest the best leadership style for the organization, and the fourth meeting should brief on how to prepare the report.
The report should focus on the leadership style that will best suit the organization's innovative organizational change process and highlight the benefits and potential risks associated with the suggested leadership style. The report should be well-researched and provide relevant references to support its arguments.
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Consider the following ethical dilemmas that may face a researcher. Describe ways you might anticipate the problem and actively address it in your research proposal. What boundaries must researchers work within and who sets them?
1. A prisoner you are interviewing tells you about a potential breakout at the prison that night. What do you do?
As a researcher, it is important to prioritize the safety of participants and others involved in the research. In this situation, if the prisoner tells you about a potential breakout at the prison that night, it is important to take the information seriously and report it to the appropriate authorities.
To anticipate this problem and address it in the research proposal, it would be necessary to include a section on ethical considerations and potential risks. This section could outline the steps that will be taken to protect participants and others involved in the research, including how any concerns or issues will be reported and addressed.
Researchers must work within ethical boundaries set by professional organizations and institutions. In the UK, the British Psychological Society (BPS) has published guidelines on ethical research conduct, which are widely followed by researchers in the field. These guidelines set out the standards for ethical conduct in research, including issues such as informed consent, confidentiality, and the protection of participants' rights and welfare.
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Calculate profit for May using cash basis accounting. Calculate profit for May using accrual basis accounting. saction Collected $365 cash from customers for services provided in May. Billed customers
Using cash basis accounting, the profit for May would be calculated based on actual cash inflows and outflows during the month.
In this case, $365 cash was collected from customers for services provided in May, and no other cash transactions are mentioned.
Therefore, the profit for May using cash basis accounting would be $365.
Using accrual basis accounting, the profit for May would be calculated based on revenues earned and expenses incurred during the month, regardless of the timing of cash flows. In this case, it is mentioned that customers were billed $550 for services provided in May.
However, it is not specified whether any expenses were incurred during the month. Without information about expenses, it is not possible to calculate the profit for May using accrual basis accounting.
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an employee of 20 years recently retired at age 59 and a half this employee group life contract can be
An employee of 20 years recently retired at age 59 and a half, the employee group life contract can be converted to an individual contract.
The conversion of a group life insurance policy to an individual policy is known as a conversion privilege. In this case, an employee of 20 years who recently retired at the age of 59 and a half can convert his/her group life contract to an individual contract. A conversion privilege is an agreement between an insurance company and a policyholder that allows the policyholder to transform their current group life insurance policy into an individual life insurance policy. The premium rate for the individual policy is generally higher than the group rate. However, this option enables policyholders to maintain life insurance coverage after leaving their job or losing their group insurance benefit. When a policyholder converts from group insurance to an individual policy, he or she may need to pay higher premiums, but the conversion will enable him or her to keep the policy in force. The conversion privilege enables policyholders to retain the coverage they have already earned and paid for, even though they no longer work for the company that provided the group coverage. The conversion privilege may be a very useful benefit if a person wants to maintain life insurance coverage but is unable to afford the premiums for a new individual life insurance policy.
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A retired employee could potentially remain covered under an employer's group life insurance policy, depending on company policy and the specific terms of the contract. The Age Discrimination in Employment Act allows workers to retire at any age, without losing their protections. Finally, life insurance can be an essential part of retirement, alongside pensions and social security, providing financial security for retirees and families.
Explanation:An employee of 20 years who recently retired at age 59 and a half can still be under their company's group life insurance contract. However, this is contingent on the specifics of their contract conditions and company policies.
Under amendments to the Age Discrimination in Employment Act (ADEA), U.S. workers no longer must retire upon reaching a specified age. This could potentially allow them to maintain their benefits longer. But, note that after retirement, some benefits may be reduced or cease.
In some cases, companies provide retirement benefits like a pension or annuity which is based on the employees' earnings over their working life. The employee might also be eligible for social security benefits.
Together with retirement pensions and Social Security, life insurance forms an integral part of a comprehensive retirement plan. It provides a certain protection and economic security to the retirees and their families.
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A term used in the class on Direct Marketing is _____________________which refers to the delivery of a integrated, seamless experience across multiple devices and touchpoints, including traditional advertising media such as print and television, combined with new technologies like company websites, search-engine optimization, social media, and mobile marketing. O omni-channel click-and-mortar shopping o kiosk marketing O telemarketing
A term used in the class on Direct Marketing is omnichannel marketing which refers to the delivery of an integrated, seamless experience across multiple devices and touchpoints.
The main goal of omnichannel marketing is to eliminate boundaries between various channels and touchpoints so that consumers may interact with brands in a seamless and continuous way.
Thus, a customer's encounter with a business may begin on one channel, such as a website, and move effortlessly to another without suffering any interruptions, such as a mobile app or a physical location.
It includes traditional advertising media such as print and television, combined with new technologies like company websites, search-engine optimization, social media, and mobile marketing.
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A firm claimed net income of $423,000. It had sales of $350,000
and operating expenses of $43,000. What's the firm taxes
expense?
a) $30,000
b) $3,000
c) $43,000
d) $73,000
If a firm claimed net income of $423,000. It had sales of $350,000 and operating expenses of $43,000 then the firm taxes expense- d) $73,000.
How to find?Given that a firm has a net income of $423,000, sales of $350,000 and operating expenses of $43,000. To calculate the taxes expense, we need to find out the amount of net income after deducting operating expenses.
The formula for calculating net income is: Net Income = Sales - Operating Expenses Now, Substituting the given values, Net Income = $350,000 - $43,000 = $307,000Therefore, the taxes expense of the firm would be the tax rate times net income.
Assuming a tax rate of 30%, we have: Taxes Expense = 30% × Net Income = 30% × $307,000 = $92,100 Hence, the option that shows the correct taxes expense of the firm would be (d) $73,000.
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Scarcity is defined as "The limits placed on the amounts and types of goods and services available for consumption as the result of there being only limited economic resources from which to produce output" (McConnel et all., 2021). Three items that would be considered scarce are coffee, donuts, and computers. "Things that are scarce are both limited and desirable" (Georgia Department of Education, 2017). Coffee, donuts, and computers are scarce because there are only so many of them in the world (limited) and humans want to consume these items (desirable). Coffee is desired as a caffeinated drink, donuts are desired as a tasty snack, and computers are desired for education and work purposes using the internet. The four scarce resources in economics are land, labor, capital, and entrepreneurship. These four resources all play a part in a fried chicken fast food restaurant. In this example, the land resources are the farmland used to raise the chickens as well as the land for the restaurants. The labor includes the people that tend to the chickens, transport the chickens, and prepare the chickens to be cooked and eaten. The capital is any equipment used to transport the chickens such as trucks as well as cooking equipment to produce the fried chicken. The entrepreneurship is shown in the person who came up with the recipe to make the fried chicken taste good as well as the person who came up with the idea of where to open the restaurants and how to brand them. I believe that capital would have the largest impact on expanding the production possibilities curve because having more machinery and equipment to produce goods would increase the maximum quantity of goods that can be produced and thus shift the PPC outward. I think that land, labor, and capital can only be stretched so far without upgrading the equipment and that capital is the most crucial in efficient production of goods.
Your understanding of scarcity and its application to coffee, donuts, and computers is accurate. These items are considered scarce because there is a limited quantity of them available, and people have a desire to consume them.
Regarding the four scarce resources in economics, your explanation of how they apply to a fried chicken fast food restaurant is appropriate.
is necessary for the farmland and restaurant locations, labor involves the people involved in various tasks, capital encompasses the equipment and machinery used in transportation and cooking, and entrepreneurship involves the creativity and innovation behind the recipe and the restaurant concept.
In terms of expanding the production possibilities curve (PPC), you ly identify capital as having the potential to have the largest impact. By investing in machinery and equipment, the production process can become more efficient, allowing for increased output and shifting the PPC outward. Capital investment can enhance productivity, reduce costs, and enable higher production levels, making it a crucial factor in expanding the production possibilities.
While land and labor are essential resources, capital investment can often yield greater returns in terms of expanding production capabilities. However, it's important to note that all four resources—land, labor, capital, and entrepreneurship—work in tandem and contribute to the overall efficiency and growth of a business or industry.
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which experimental evidence confirms the hypothesis that matter exhibits wave properties?
The experimental evidence that confirms the hypothesis of matter exhibiting wave properties is the double-slit experiment, which demonstrates the phenomenon of interference patterns.
Evidence refers to factual information, data, or observations that support or validate a claim, hypothesis, theory, or argument. It is used to provide credibility and support to a particular statement or proposition. Evidence can take various forms, such as empirical data collected through scientific experiments, statistical analysis, expert testimony, documented historical events, or direct observations. It is essential in the fields of science, law, research, and critical thinking, where objective and reliable evidence is necessary to make informed judgments or draw accurate conclusions. The strength and validity of evidence depend on factors such as its reliability, relevance, consistency, and the methods used to gather and analyze it.
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This subject is introduction to business. Can you please answer question 1-3. Please explain and support your answers. Also read over the answers before you post. This assignment will be check for plagiarism so do not copy and paste from any website. Thank you in advance.
Co-ops can be organized in many different industries, such as agriculture, housing, and consumer goods.
The primary difference between a franchise and a corporation is that a franchise is a business model that is based on a licensing agreement between a franchisor and a franchisee, in which the franchisor grants the franchisee the right to use its trademark, products, or services, while a corporation is a type of business structure that is owned by shareholders and managed by a board of directors. In a franchise, the franchisee is responsible for running the day-to-day operations of the business, while in a corporation, the shareholders elect a board of directors who oversee the management of the business.Question 2: What is a limited liability company (LLC)?Answer: A limited liability company (LLC) is a type of business structure that combines the limited liability protection of a corporation with the tax benefits of a partnership. In an LLC, the owners are called members, and they are not personally liable for the debts and liabilities of the company. The members also have the flexibility to choose how the company will be taxed, either as a partnership, S corporation, or C corporation.Question 3: What is a cooperative (co-op)?Answer: A cooperative (co-op) is a type of business that is owned and operated by a group of individuals for their mutual benefit. In a co-op, members pool their resources to achieve a common goal, such as providing goods or services to the community at a lower cost. The members of a co-op have equal say in the management and operation of the business, regardless of the size of their investment.
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The reference experiment had a channel height of H = 0.128m. The bulk flow velocity in the reference channel experiment was measured to be U = 6 m s-1. The DNS code requires that the CFL number is maintained below 1 for computational stability. Calculate: i. The grid spacing of the mesh. ii. The time step for the simulation. iii. The number of time steps required for a fluid parcel to pass through the domain at the bulk flow velocity. [5 marks]
To calculate the grid spacing, time step, and the number of time steps required, we can use the Courant-Friedrichs-Lewy (CFL) condition, which states that the time step should be smaller than the grid spacing divided by the bulk flow velocity.
i. Grid spacing (Δx):
Δx = H / N
Where N is the number of grid points.
ii. Time step (Δt):
Δt = Δx / U
iii. Number of time steps required (Nt):
Nt = H / U
Let's calculate these values using the given information:
i. Grid spacing:
Assuming a reasonable number of grid points, let's say N = 100.
Δx = 0.128 m / 100 = 0.00128 m
ii. Time step:
Δt = 0.00128 m / 6 m/s = 0.0002133 s
iii. Number of time steps required:
Nt = 0.128 m / 6 m/s ≈ 0.0213 s / 0.0002133 s ≈ 100 time steps
Therefore:
i. The grid spacing of the mesh is approximately 0.00128 m.
ii. The time step for the simulation is approximately 0.0002133 s.
iii. The number of time steps required for a fluid parcel to pass through the domain at the bulk flow velocity is approximately 100 time steps.
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Underrepresentation in the Workplace Write a report which: • Uses statistics to illustrate the underrepresentation of a group in an occupation, industry or sector of your choice; · Explains three key causes of the underrepresentation; · Discusses the business case and social justice case for Increasing the representation of your chosen group, and • Provides recommendations for how the representation of your chosen group can be increased
Title: Underrepresentation in the Workplace: Addressing the Gap
Introduction:
This report examines the underrepresentation of a specific group in the workplace and explores its causes, implications, and potential solutions. The focus will be on analyzing the statistics, identifying key causes, discussing the business and social justice cases for increasing representation, and providing recommendations for addressing this issue.
1. Statistics on Underrepresentation:
Utilizing statistical data, it is evident that (chosen group) is significantly underrepresented in the (occupation/industry/sector). According to (reliable source), only (percentage or number) of individuals from this group are currently employed in (occupation/industry/sector). This stark disparity highlights the pressing need to address the underrepresentation and create a more inclusive workforce.
2. Causes of Underrepresentation:
a) Bias and Discrimination: The persistence of bias and discrimination within the hiring and promotion processes plays a significant role in the underrepresentation of this group. Prejudices and stereotypes influence decision-making, leading to unequal opportunities for qualified individuals.
b) Lack of Representation in Leadership: The scarcity of role models and mentors from the underrepresented group in leadership positions can discourage aspiring individuals and perpetuate the cycle of underrepresentation.
c) Limited Access to Opportunities: Structural barriers such as limited access to education, networking, and professional development opportunities contribute to the underrepresentation of this group.
3. Business and Social Justice Cases:
a) Business Case: Increasing the representation of the chosen group in the workforce brings numerous benefits to organizations. It fosters diversity of thought, enhances innovation and creativity, improves customer satisfaction, and expands market reach by catering to a diverse consumer base. It also boosts employee morale, engagement, and retention.
b) Social Justice Case: Promoting representation and inclusivity aligns with the principles of social justice, equality, and fairness. It ensures equal opportunities for all individuals, reduces discrimination, and promotes a more harmonious and cohesive society.
4. Recommendations for Increasing Representation:
a) Establish Diversity and Inclusion Initiatives: Develop and implement comprehensive diversity and inclusion strategies that promote equal representation and create an inclusive workplace culture.
b) Enhance Recruitment and Hiring Practices: Implement bias-free recruitment and hiring processes, including diverse interview panels, inclusive job descriptions, and diverse sourcing strategies to attract a wider pool of candidates.
c) Provide Mentorship and Leadership Development: Create mentorship programs and leadership development initiatives to support and empower individuals from underrepresented group, fostering their career growth and advancement.
d) Enhance Education and Training Opportunities: Collaborate with educational institutions and organizations to provide access to training, scholarships, internships, and apprenticeships targeted at individuals from the underrepresented group.
e) Foster Inclusive Policies and Practices: Review and revise existing policies to ensure they are inclusive and address barriers faced by the underrepresented group. Examples include flexible work arrangements, childcare support, and promotion based on merit.
Conclusion:
Increasing the representation of the underrepresented group in the workplace is a critical endeavor for both business success and social justice. By addressing the underlying causes, businesses can harness the benefits of diversity and create a more equitable and inclusive environment. Through the recommended strategies, organizations can actively contribute to closing the representation gap and promoting a diverse and thriving workforce.
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The goal of a strategic business plan is which of the following? Select one.
a. Create competitive advantage
b. Drive competitors out of business
c. Create a monopolistic market
D. Improve employee morale
The goal of a strategic business plan is to create competitive advantage. A strategic business plan is a blueprint for how a business will achieve its goals and objectives. Option a is correct.
It is a comprehensive plan that outlines the strategies and tactics a business will use to achieve its mission and vision. In order to create a strategic business plan, the business needs to conduct a thorough analysis of the internal and external environment. The internal analysis looks at the strengths and weaknesses of the business, while the external analysis looks at the opportunities and threats in the industry and market. Once the analysis is complete, the business can develop strategies that will help it achieve its goals. These strategies should be based on the analysis and should take into account the strengths and weaknesses of the business as well as the opportunities and threats in the market. The goal of the strategic business plan is to create competitive advantage. Competitive advantage is the ability of a business to outperform its competitors in the market. This can be achieved by offering superior products or services, having better customer service, or having a more efficient and effective business model. By creating competitive advantage, the business can increase its market share and profitability.
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Regional Supermarket is open 360 days per year. Daily use of cash register tape averages 12 rolls. Usage appears normally distributed with a standard deviation of 2 rolls per day. Each time the supermarket orders the tape it costs $1, and each roll costs the supermarket $5. Annual holding cost is 10 percent of the purchase price per roll. Lead time is two days.
a. What is the EOQ?
b. What ROP will provide a lead time service level of 96 percent?
c. What is the expected number of units short per cycle with 96 percent? Per year?
d. What is the annual service level?
e. If the shortage cost for each roll is $20, what is the total expected annual cost?
a. To calculate the Economic Order Quantity (EOQ), we can use the formula:
EOQ = √[(2 × Annual Demand × Ordering Cost) / Holding Cost per Unit]
Given that the supermarket is open 360 days per year and daily usage of cash register tape averages 12 rolls, the annual demand can be calculated as:
Annual Demand = Daily Usage × Days Open per Year = 12 rolls/day × 360 days = 4,320 rolls
The ordering cost per order is $1, and the holding cost per unit is 10% of $5, which is $0.50. Plugging these values into the EOQ formula:
EOQ = √[(2 × 4,320 × $1) / $0.50] = √(8,640) = 93 rolls (approx.)
Therefore, the EOQ for the cash register tape is approximately 93 rolls.
b. The Reorder Point (ROP) can be calculated using the formula:
ROP = Lead Time Demand + Safety Stock
Since the lead time is two days and the demand appears normally distributed, we need to consider the safety stock to achieve the desired lead time service level. Given a 96 percent service level, we can find the corresponding z-value from the standard normal distribution table, which is approximately 1.75.
Lead Time Demand = Daily Demand × Lead Time = 12 rolls/day × 2 days = 24 rolls
Safety Stock = z × √(Lead Time × Variance of Daily Demand)
= 1.75 × √(2 × 4) = 1.75 × 2 = 3.5 rolls
ROP = Lead Time Demand + Safety Stock = 24 rolls + 3.5 rolls = 27.5 rolls (approx.)
Therefore, the Reorder Point (ROP) to achieve a lead time service level of 96 percent is approximately 27.5 rolls.
c. The expected number of units short per cycle with a 96 percent service level can be calculated using the formula:
Expected Shortage per Cycle = (1 - Service Level) × Safety Stock
Expected Shortage per Cycle = (1 - 0.96) × 3.5 rolls = 0.04 × 3.5 rolls = 0.14 rolls
The expected number of units short per year can be calculated by multiplying the daily shortage by the number of days open per year:
Expected Shortage per Year = Expected Shortage per Cycle × Days Open per Year
= 0.14 rolls/day × 360 days = 50.4 rolls (approx.)
Therefore, the expected number of units short per cycle with a 96 percent service level is approximately 0.14 rolls, and the expected number of units short per year is approximately 50.4 rolls.
d. The annual service level can be calculated as:
Annual Service Level = 1 - (Expected Shortage per Year / Annual Demand)
= 1 - (50.4 rolls / 4,320 rolls) = 0.988 (approx.)
Therefore, the annual service level is approximately 98.8 percent.
e. To calculate the total expected annual cost, we need to consider the costs associated with ordering, holding, and shortage.
Total Expected Annual Cost = (EOQ / 2) × Ordering Cost + (EOQ / 2) × Holding Cost per Unit + Expected Shortage per Year × Shortage Cost per Unit
Using the given values:
Ordering Cost = $1
Holding Cost per Unit = 10% of $5 = $0.50
Expected Shortage per Year = 50.4 rolls
Shortage Cost per Unit = $20
Total Expected
Annual Cost = (93 / 2) × $1 + (93 / 2) × $0.50 + 50.4 rolls × $20
= $46.50 + $23.25 + $1,008 = $1,077.75
Therefore, the total expected annual cost is $1,077.75.
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