Business, 27.04.2021 14:50 mishcacross21

TStar buys chemical solvent (Acetone) from a supplier. Acetone costs $50 per liter, the ordering cost is $80, and inventory holding cost is based on a 24% annual interest rate (assume simple interest rate). The company uses an average of 40,000 liters of Acetone per year. The standard deviation of demand per week is 0.60% of the annual demand. Expected lead time for order arrival is 4 weeks with standard deviation of 1.5 days. The company would like to achieve 97.5% customer service level. 8. What is the order quantity? (Round up your answer) [3 points]
9. What is the expected demand during lead time? (Round up your answer) [2 points]
10. What is the standard deviation of the demand during lead time? (Round up your answer) [2 points]
11. What is the safety stock? (Round up your answer) [2 points]
12. What is the reorder point? [2 points]
13. What is the average number of orders in a year the company makes? (Round up your answer) [2 points]

Answers: 3

Show answers

Another question on Business

Business, 22.06.2019 01:30

Ben collins plans to buy a house for $166,000. if the real estate in his area is expected to increase in value by 2 percent each year, what will its approximate value be five years from now?

Answers: 1

Answer

Business, 22.06.2019 07:30

Which of the following is an example of an unsought good? a. cameron purchases a new bike. b. jordan buys paper towels. c. taylor buys cupcakes from her favorite bakery. d. riley buys new windshield wipers for her car.

Answers: 3

Answer

Business, 22.06.2019 17:30

What is one counter argument to the premise that the wealth gap is a serious problem which needs to be addressed?

Answers: 1

Answer

Business, 22.06.2019 19:40

The following cost and inventory data are taken from the accounting records of mason company for the year just completed: costs incurred: direct labor cost $ 90,000 purchases of raw materials $ 134,000 manufacturing overhead $ 205,000 advertising expense $ 45,000 sales salaries $ 101,000 depreciation, office equipment $ 225,000 beginning of the year end of the year inventories: raw materials $ 8,100 $ 10,300 work in process $ 5,900 $ 21,000 finished goods $ 77,000 $ 25,800 required: 1. prepare a schedule of cost of goods manufactured. 2. prepare the cost of goods sold section of mason company’s income statement for the year.

Answers: 3

Answer

You know the right answer?

TStar buys chemical solvent (Acetone) from a supplier. Acetone costs $50 per liter, the ordering cos...

Questions