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A major component of the costs of many large firms is the cost associated with ordering and holding inventory. If the yearly demand for the good is D and the size of each order placed is q then the number of orders N in each year is:
N=D/Q
If the cost of placing each order is Co then the cost of placing all N orders is:
OC = CoN
The second component is the carrying or handling cost of an inventory. Under the assumption that the average number of items in stock is q / 2 and with cost of each item set at p , the value of this average number of items is p (q / 2) . The carrying in this situation is the proportion C of this value:
CC = Cnp (q/2)
The third component of total costs is simply the purchase cost of all the items, or PC = pD. Assuming that Co, D, Cn and p are constant, what is the optimal order size q?
Explain how foreign aid might help in the development process of a developing country. Definition/outline of various forms of aid, i.e. donor aid, tied aid, bilateral aid etc.
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Gasoline Rationing - In the year 1974 and again in the year 1979, the government imposed price controls on gasoline. - This resulted in scarcity and gasoline was rationed.
how do i use the grid technique to determine the least cost
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Sita expects her future earnings to be worth Rs. 100. If she falls ill, her expected future earning will be Rs. 25. There is a belief that she may fall ill with probability of , -
Use a graphical illustration to describe briefly what the influence of each of the following would be on the market supply of labor:(a) an increase in immigration (b) more women en
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