User Account

All Pages

What inventory model

Assignment Help Finance Basics
Reference no: EM131055675

The Amazon Forest Restaurant stocks a red Brazilian table wine purchased from a nearby city. The daily demand for the wine at the restaurant is normally distributed with mean of 20 bottles and a standard deviation of 5 bottles. The wine merchant sends a representative to check the restaurant's wine cellar every 30 days. During a recent visit, there were 25 bottles in stock. The lead time to receive an order is 2 days. The restaurant manager has requested an order size that will enable him to limit the probability of a stock out to 2 percent.

1. What inventory model is appropriate for this model?

a. EOQ model
b. EPQ model
c. (Q,R) model with random demand
d. Periodic review model

2. How many bottles should be ordered during that particular visit?

a. 652 bottles
b. 681 bottles
c. 673 bottles
d. 662 bottles

3. What is the safety stock?

a. 66 bottles
b. 47 bottles
c. 37 bottles
d. 58 bottles

Reference no: EM131055675

Questions Cloud

Permit collection of the goods on arrival by consignee : Describe the way in which the establishment of credit by the consignee of goods works to provide payment to the consignor so as to permit the collection of the goods on arrival by the consignee. (Suggested length not more than 150 words)
Question regarding the bond yields : Bond Yields. A bond with face value $1,000 has a current yield of 6% and a coupon rate of 8%. a. If interest is paid annually, what is the bond's price?
Revision and adjustment of the optimal delivery system : Evaluation of the delivery system against project objectives, business case, risks and constraints - Revision and adjustment of the optimal delivery system
Different aspects are these two societies similar : Although the dystopia in Fahrenheit 451 is fictional, in many ways it parallels (is very similar to), perhaps to a lesser extent, some societies today.
What inventory model : 1. What inventory model is appropriate for this model? 2. How many bottles should be ordered during that particular visit?
Annual cost of holding : What is the annual cost of holding and set up? How many times per year the beer is produced?
Compare historical cost with fair value accounting : BAO2202 Financial Accounting Assignment. Required: Compare historical cost accounting with fair value accounting (AASB 13) and evaluate bow the use of fair value accounting has either increased or decreased decision-useful information for the users..
Question regarding the regular subscription : Your cost of capital is 7 percent. How many years would you have to live to make the lifetime subscription the better buy? Payments for the regular subscription are made at the beginning of each year. (Round up if necessary to obtain a whole numbe..
Methodically comparing his beloved : Essays 600 words. Examine how William Shakespeare's Sonnet 18 uses logo's in methodically comparing his beloved to a summer day. Which one wins the comparison and why.

Reviews

Write a Review

Finance Basics Questions & Answers

  What costs are relevant to decision making

1. Distinguish between the different types of costs that were examined this week, such as sunk costs, opportunity costs, and outlay costs. [please also mention other costs that are not listed] 2. What costs are relevant to decision making?

  Is return on investment satisfactory for a nike and b

key comparative figures millions for both nikeand reebokfollowkey figuresnikereebokfinancing liabilities

  What is the percentage up movement

Use a two-step tree to value a six-month European call option and a six-month European put option. In both cases the strike price is $150.

  Problem related to the coogly company

Coogly Company is attempting to identify its weighted average cost of capital for the coming year and has hired you to answer some questions they have about the process. They have asked you to present this information in a PowerPoint presentation ..

  What is madison weighted average cost of capital

As president of Madison Corp. your finance people tell you that Madison is 30% debt and 70% common stock. In addition they tell you the cost of the common stock is 11% and the cost of the debt is 5.0%. What is Madison's weighted average cost of ca..

  Government support of technological innovation

Research and identify how the U.S. government supports innovative technology activities in companies. Discuss at least two government sponsored programs and explain the positive effects these programs have on technology innovation in the private s..

  Current level of profitability

a. At the current level of profitability, will more debt enhance results? Why? b. Calculate the EAT, ROE, EPS, and the DFL at the current and proposed structures, and display your results in a systematic table.

  Compute amount of resources required to support firms cash

american products is concerned about managing cash efficiently. on the average inventories have an age of 90 days and

  Computation of present value of cash flows to make purchase

Computation of present value of cash flows to make purchase decision where demand is so high for Anderson Electric's products that the company cannot manufacture enough inventory to satisfy demand

  Concept of currency exposure risk

Define and discuss the concept of Currency Exposure Risk, Translation Exposure, and Economic Exposure.

  Genaro needs to capture a return of 40 percent for his

1.genaro needs to capture a return of 40 percent for his one-year investment in a property. he believes that he can

  A major international bank and visit its website

Choose a major international bank and visit its website. List 3 international trade financing services that the bank provides and explain each in 1-2 sentences?

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd