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a. Annual demand for number 2 pencils at the campus store is normally distributed with mean 1,000 and standard deviation 250. The store purchases the pencils for 6 cents each and sells them for 20 cents each. There is a two-month lead time from the initiation to the receipt of an order. The store accountant estimates that the cost in employee time for performing the necessary paperwork to initiate and receive an order is $20, and recommends a 22% annual interest rate for determining holding cost. The cost of a stockout is the cost of lost profit plus an additional 20 cents per pencil, which represents the cost of loss of goodwill.
b. Find the simultaneous optimal values of Q and R.
An energy manager has $5000 available to purchase a high efficiency air conditioner that has a life of 6 years. The manager would like to know what should be the energy cost savings needed each year to justify the purchase (a) if the interest rate is..
Does the coffee marketplace meet all six conditions of a perfectly competitive marketplace.
a marketing order for oranges has a fixed total supply of q1000 crates a month. demand in the fresh orange market is qf
To what extent are today’s trade debates such as the Trans-Pacific Partnership similar to or different from the mercantilists’ focus on maximizing exports and limiting imports?
there was a month were employment and the unemployment rate rose. Suppose the computations were correct, explain how is it possible for both to have increased.
Consider an investor with preferences given by the utility function U = E(r) – 0.5Aσ2 and there are two portfolios with the following characteristics: Portfolio A Portfolio B E(r) = 0.06 E(r) = 0.10 σ = 0.07 σ = 0.17 (a) suppose that the investor has..
A farmer sells cotton to a clothing company for $1,000 and the clothing company turns the cotton into T-shirts that it sells to a store for a total of $2,000. How much did GDP increase a result of these transactions?
Is there evidence that a party realignment is occurring in the United States? What is the organizational structure of political parties? What are some of the functions of parties in the electoral arena? How do both the electoral system and federalism..
What is the cross price elasticity with respect to good x? What does the sign of the coefficient tell us? Interpret your results.
Jaynet spends $25,000 per year on painting supplies and storage space. She recently received two job offers from a famous marketing firm – one offer was for $105,000 per year, and the other was for $85,000. What are her accounting profits? What are h..
If all other car dealers sell either the same number of vehicles or fewer, what is the largest value that the Herfindahl index could possibly take for car dealers in your area?
The market supply curve for a perfectly competitive, constant cost industry is
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