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XYC Co. purchases an item. The annual demand for this item is 50000 units. The ordering cost is $60 per order. The holding cost is $10 per unit per year. The lead time for this item is 5 days. Assume 250 working days per year. Find:
a) Economic order quantity, EOQ.
b) Average inventory if EOQ is used.
c) What is the optimal number of orders per year?
d) What is the annual cost of ordering and holding inventory?
e) What is the re-order point?
You are considering buying car insurance for the coming two years. Whether or not you buy insurance, you have the following probability distribution over the car accident damages for each year (the probability of having an accident is independent acr..
Suppose the government of a desert community wants to punish excessive water usage, where "excessive" is defined as any usage greater than 100 gallons/week. to do this, the government paces a flat $100 income tax on anyone who consumes more than 100 ..
Explain, with the use of demand and supply diagrams, the impact on equilibrium price and quantity of membership to health clubs from the simultaneous impact of an effective advertising campaign by the National Health Council and the reduction of comp..
Real estate magnate Donald Trump once proposed a one-time tax of 14.25 percent on the net wealth of every American with more than $10 million. Would this be an efficient way to raise tax revenue? Why or why not?
Maria is a single mother. Every week she has 100 hours available to split between leisure and work. If she works, she can earn 20 dollars per hour. Write down the equation for her budget constraint and illustrate it with a graph.
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Explain how inflation can have redistributive effects in the economy. What are these? Provide at least two examples that illustrate these redistributive effects.
Most tax payments increase as GDP increases. Government spending influences spending indirectly. A deficit nation in a fixed exchange rate system can improve its balance of ayments by increasing _____. Why do economists insist on emphasizing the diff..
A country is described by the Solow growth model. It has a population growth rate of 5 percent and a rate of technological progress of 3 percent. It is currently at the steady state. What is the country is growth rate for output and output per worker..
Elucidate how does knowledge of price elasticity among different groups of clients or for various products enable managers to price discriminate or change different prices for these groups.
Anticipate what business law may look like 20 years from now and give your opinion on what you believe students will need to know in order to be successful in the field. Provide a rationale for your response.
A medical device company has a monopoly on a certain class of cardiac implants. Demand for the implants is given by P=28000-5Q and marginal revenue is given by MR=28000-10Q. The total fixed costs for the implants division is 50000 and the marginal co..
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