As the uncertainty of supply or demand ________, the required level of safety inventories ________
A) grows, increases
B) increases, decreases
C) decreases, grows
D) decreases, increases
Answer: A
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Melbourne Company sold merchandise that it had purchased with a list price of $3,300. The credit terms were of 2/10, n/30. Assuming that Melbourne paid for the merchandise during the discount period, the cost of goods sold for this transaction would be $2,970.
Answer the following statement true (T) or false (F)
The linear programming model for a transportation problem has constraints for:
A) supply at each source. B) supply at each source and demand at each destination. C) demand at each destination. D) a feasible solution.
Use the security market line to determine the required rate of return for the following firm's stock
The firm has a beta of 1.25, the required return in the market place is 10.50%, the standard deviation of returns for the market portfolio is 25.00%, and the standard deviation of returns for your firm is also 25.00%. A) 13.13% B) 10.50% C) 31.25% D) There is not enough information to answer this question.
Which of the following is not true regarding the linear programming formulation of a transportation problem?
a. Costs appear only in the objective function. b. The number of variables is (number of origins) x (number of destinations). c. The number of constraints is (number of origins) x (number of destinations). d. The constraints' left-hand side coefficients are either 0 or 1.