Maintaining safety stock will usually - reduce the risk of stock outs.
Safety stock inventory, sometimes called buffer stock, is a term used by inventory managers to describe a level of extra stock that is maintained to mitigate risk of stock outs or (shortfall in raw material or finished goods) due to uncertainties in supply and demand. Many companies look at their own demand fluctuations and assume that there is not enough consistency to predict future variability.
Maintaining safety stock will usually: Multiple Choice reduce the risk of stock outs. decrease a firm's...
To convince investors to accept greater volatility, you must: Multiple Choice O Decrease the risk premium. O Increase the risk premium O Decrease the real retum. O Decrease the risk free rate. Increase the risk-free rate.
The cost of preferred stock: Multiple Choice O increases when a firm's tax rate decreases. O is constant over time. O is unaffected by changes in the market price of the stock. O is equal to the stock's dividend yield. increases as the price of the stock increases.
Problem 3 Although your initial calculations were quite precise, you learn that Tegaderm experiences multiple stock-outs in the pharmacy. You have also learned that demand is actually variable; it has a mean of 80 dressings per day, with a daily standard deviation of 10. Additionally, 3M takes longer to ship than expected: it actually takes 10 days to receive an order. Please round to the nearest whole unit (for units, dollars can remain in dollar/cents) for this entire problem. You...
Financial markets and intermediaries: Multiple Choice enable investors and businesses to reduce risk. all of these. provide liquidity channel savings to real investment.
A gourmet coffee shop in downtown San Francisco is open 200 days a year and sells an average of 75 pounds of Kona coffee beans a day. (Demand can be assumed to be distributed normally, with a standard deviation of 15 pounds per day.) After ordering (Fixed cost=$16 per order), beans are always shipped from Hawaii within exactly four days. Per-pound annual holding costs for the beans are $3. a) What is the EOQ for Kona Coffee Beans? b) What...
One reason for using the Delphi method in forecasting is to: Multiple Choice reduce the risk that one individual’s opinion will prevail. achieve a high degree of accuracy. maintain accountability and responsibility. be able to replicate results. prevent hurt feelings.
EOQ, reorder point, and safety stock Alexis Company uses 631 units of a product per year on a continuous basis. The product has a fixed cost of $41 per order, and its carrying cost is $4 per unit per year. It takes 5 days to receive a shipment after an order is placed, and the firm wishes to hold 10 days' usage in inventory as a safety stock. a. Calculate the EOQ. b. Determine the average level of inventory. (Note:...
accounts multiple choice The graph below depicts the components of total stock administration costs for an item of inventory Cost(s) Z Quantity (units) Nhat does the point labelled Z represent? Select one: a. Ordering costs b. Storage costs C. The economic order quantity d. Total stock administration costs Total Stock Administration costs under the EOQ model is the sum of: Select one: a. Carrying costs and reorder level costs b. Storage and carrying costs c. Minimum stock costs and reorder...
EOQ, reorder point, and safety stock Alexis Company uses 805 units of a product per year on a continuous basis. The product has a fixed cost of $50 per order, and its carrying cost is $4 per unit per year. It takes 5 days to receive a shipment after an order is placed, and the firm wishes to hold 10 days' usage in inventory as a safety stock. a. Calculate the EOQ. b. Determine the average level of inventory. (Note:...
Which of the following is true? Multiple Choice A large stock dividend will reduce par The purchase of treasury stock decreases Total Stockholder's equity A large or small stock dividend reduces Total Stockholder's equity A stock split reduces Retained Earnings