By incorporating the demand uncertainty into EOQ model, the concept of service level is introduced. Service level is associated with how much safety stock to be carried. There are two types of service levels. ___________ uses the probability of stocking out as a measure while _____________ uses expected number of units short per reorder cycle. Choose the correct words to fill in the blanks
a. Cycle service level/customer service levels
b. Cycle service level/order service levels
c. Customer service levels/cycle service level
d. Order service levels/cycle service level
A
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A compensation plan with a larger base-salary component and a smaller commission component is most effective for driving salespersons to acquire new businesses
Indicate whether the statement is true or false
Flagstaff Company has budgeted production units of 7,900 for July and 8,100 for August. The direct materials requirement per unit is 2 ounces (oz.). The company requires to have safety stock of direct materials on hand at the end of each month to complete 20% of the units of budgeted production in the following month. There was 3,160 ounces of direct material in inventory at the start of July. The total ounces of direct materials to be purchased in July is:
A. 16,200 oz. B. 19,040 oz. C. 15,880 oz. D. 15,800 oz. E. 15,720 oz.
The person who plays the shaper role is unchallenging, dull, and weakens under pressure
Indicate whether the statement is true or false.
Which of the following is NOT an application included in the finance and accounting module in an ERP system?
a. general ledger entry b. accounts receivable and accounts payable c. fixed asset management d. building maintenance