Determine the optimal shortage level
A company distributes repair parts for high-end appliances. The annual demand is 81,000 and the company operates 300 days per year. The annual carrying cost is 20% of the item cost, which is $500. The ordering cost is estimated at $60 and the shortage cost is $150.
Answer: 161
You might also like to view...
Commodity IT assets easily acquired in the marketplace and should be outsourced under the core competency theory
Indicate whether the statement is true or false
The data obtained by using a Stapel scale can be analyzed in the same way as a ________
A) continuous rating scale B) Constant sum scale C) semantic differential scale D) Ranking scale
When Nicole performs the functions of planning, organizing, and executing activities that increase sales and profits in her territory, she is engaged in:
A. marketing. B. sales management. C. territory management. D. time management. E. operating.
If a check correctly written and paid by the bank for $272 is incorrectly recorded in the company's books for $227, how should this error be treated on the bank reconciliation?
A. Add $45 to the book balance. B. Add $45 to the bank's balance. C. Subtract $45 from the bank's balance and add $45 to the book's balance. D. Subtract $45 from the book balance. E. Subtract $45 from the bank's balance.