In a continuous review inventory​ system, the lead time for door knobs is weeks. The standard deviation of demand during the lead time is units. The desired​ cycle-service level is percent. The supplier of door knobs streamlined its operations and now quotes a 1 week lead time. Refer to the standard normal tableLOADING... for​ z-values. How much can the safety stock be reduced without reducing the percent​ cycle-service level? The safety stock can be reduced by nothing door knobs. ​(Enter your response rounded to the nearest whole​ number.)

Answers

Answer 1

Answer:

The answer is "116 doorknobs".

Explanation:

The standard deviation of the demand before the (four weeks) protection intervals = [tex]\sigma-d \times (\sqrt{L}) = 100 \ units\\[/tex]

The desired cycle service level is [tex]99\%[/tex].Therefore, [tex]z = 2.33[/tex]

The safety stocks for the four-weeks protecting interval are:

Safety stock [tex]= z\times [ \sigma-d \times (\sqrt{L})][/tex]

                     [tex]= 2.33 \times 100 \\\\= 233\ door\ knobs[/tex]

The safety stocks require for the one-week protection interval are: [tex]\sigma-dLT = \sigma-dt \times (\sqrt{L}) = \sigma-dt \times (\sqrt{4}) = 100\ door\ knobs\\\\\sigma-d = \frac{100}{(\sqrt{4})} = \frac{100}{2} = 50 \ door\ knobs\\\\[/tex]

Safety stock [tex]= z\times \sigma-dt = 2.33 \times 50 = 116.5 \ or\ 117 \ door\ knobs\\\\[/tex]

Safety stock reduction[tex]= 233 -117 = 116 \ door\ knobs[/tex]


Related Questions

Carol Co. prepares a statement of cash flows starting with net income and then adjusting for items necessary to obtain net cash provided or used by operating activities. Carol Co. must be using the______method of reporting the statement of cash flows.

Answers

Answer:

indirect

Explanation:

From the question we are informed about Carol Co. prepares a statement of cash flows which start with net income and then adjusting for items necessary to obtain net cash provided or used by operating activities. In this case, Carol Co. must be using the

indirect method of reporting the statement of cash flows. In financial accounting, cash flow statement can be regarded as financial statement which express the way changes in balance sheet accounts as well as income affect cash and cash equivalents, and also give the analysis breakdown to operating, financing as well as investingactivities.

The methods for reporting statement of cash flows could be Direct or indirect method.

The indirect method can be regarded as method that gives presentation of the statement of cash flows by strating

with net income or net loss, along with deduction or additions to the amount for non-cash revenue and expense items or from them which comes subsequently, which then results to cash flow from operating activities.

Miracle Clean's variable costs are $3.00 per bottle and Fixed Expenses are $350,000 per year. The company currently sells 150,000 bottles for $6.50 which results in profit of $175,000. The company is considering raising the selling price to $7.00 per bottle which is expected to decrease sales by 20%. If the price is raised, the number of units that must be sold to keep the profits unchanged is

Answers

Answer:

131,250= number of units

Explanation:

Giving the following information:

We need to calculate the number of units to be sold to maintain a profit of $175,000.

Unitary variable cost= $3

Fixed expenses= $350,000

Selling price= $7

Net income= total contribution margin - fixed cost

175,000= number of units*(7 - 3) - 350,000

525,000 = number of units*4

525,000 / 4= number of units

131,250= number of units

Three months of rent were prepaid on May 1 for $7,200, but two months have now expired, leaving only one month prepaid at June 30. What is the amount of rent expense that will be recorded in the related adjusting entry dated June 30?a- $0b- $2,400c- $4,800d- $7,200

Answers

Answer:

b- $2,400

Explanation:

The computation of the amount that should be recorded is given below:

= 3 months rent ÷ number of months

= $7,200 ÷ 3 months

= $2,400

Hence, the amount of rent that should be recorded is $2,400

Therefore the option b is correct

The same should be considered

Last month, the Tecumseh Corporation supplied 400 units of three-ring binders at $6 per unit. This month, the company supplied the same quantity of binders at $4 per unit. Based on this evidence, Tecumseh has experienced:_________.
a. a decrease in supply
b. an increase in supply
c. an increase in the quantity supplied
d. a decrease in the quantity supplied.

Answers

Answer:

B

Explanation:

according to the law of supply, the higher the price, the higher the quantity supplied and the lower the price, the lower the quantity supplied

in this question, there was only a change in price but no change in the quantity supplied.

so a change in supply and not a change in the quantity supply occured

determine supply per price

400 / 6 = 67

400 / 4 = 100

supply increased

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