The daily demand for a product is normally distributed with a mean of 80 and a standard deviation of 8. Constant lead time is 4 days. The cost of placing an order is $20. The item costs $8 and the carrying rate per year is 10% of the item cost
Determine the economic order quantity for a 365-day year.
Answer: 1209
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The affect referral model of evaluating alternatives suggests that consumers will buy products they used and liked in the past
Indicate whether the statement is true or false
______________________________ systems use the Internet to automate and manage purchases and the vendors from which these purchases are made
Fill in the blank(s) with correct word
American Corporation purchased a building for $900,000 at the end of year 2002. The building will be depreciated over 40 years and is estimated to have a $100,000 salvage value. At the end of 2012, when it had a book value of $700,000, it was appraised for $1,100,000. A potential buyer offered $900,000. American rejected the offer. At what amount should the net book value of the building be at
the end of 2012. A) $1,100,000 B) $ 900,000 C) $ 600,000 D) $ 700,000
Variable cost:
A) depends on the number of units produced. B) plus marginal cost equals fixed cost. C) is equal to total cost in deterministic models. D) is the same as average cost.