Fresh Market is open 350 days a year. Daily use of cash register tape (daily demand)...

Fresh Market is open 350 days a year. Daily use of cash register tape (daily demand) has a mean of 20 rolls and a standard deviation of 5 rolls. It takes nine days for Fresh Market to receive the order it placed with its register tape supplier. What level of safety stock of the register tape does Fresh Market need to carry, in order to guarantee that the register tape does not run out 95% of the time (the corresponding z-value is 1.6)?

Solutions

Expert Solution

Safety stock refers to extra stock level that is maintained in order to eliminate the risk of shortage of stocks because supply and demand may vary. Safety stock is calculated based on the lead time and demand. Lead time refers to the time when the order is placed or produced till the time the item is ready for sale or delivery to the customers.

keosha answered 1 year ago

Next > < Previous

Related Solutions

At the end of the day, the cash register tape shows $1,200 in cash sales but...

At the end of the day, the cash register tape shows $1,200 in cash sales but the count of cash in the register is $1,260. The proper entry to account for this excess is: Multiple Choice Debit Cash $1,200; credit Sales $1,200. Debit Cash $1,260; credit Sales $1,260. Debit Cash $1,260; credit Sales $1,200; credit Cash Over and Short $60. Debit Cash $1,200; debit Cash Over and Short for $60; credit Sales $1,260. Debit Cash Over and Short $60; credit...

At the end of the day, the cash register tape lists $881.40 as total income from...

At the end of the day, the cash register tape lists $881.40 as total income from services. Cash on hand consists of $18.25 in coins, $433.60 in currency, $100.00 in traveler's checks, and $427.00 in customers' checks. The amount of the Change Fund is $100. Required: Record the entry to record the day's cash revenue. If an amount box does not require an entry, leave it blank. GENERAL JOURNAL PAGE DATE DESCRIPTION DOC. NO. POST. REF. DEBIT CREDIT To record...

Skinner Produce buys fresh Boston lettuce daily. Daily demand is normally distributed with a mean of...

Skinner Produce buys fresh Boston lettuce daily. Daily demand is normally distributed with a mean of 100 units and standard deviation of 15 units. At the beginning of the day Skinner orders 140 units of lettuce. What is the probability that Skinner will have at least 20 units left over by the end of the day? a. 0.996 b. 0.91 c. 1.00 d. 0.09

PART B The RBA intends to use open market operations in addition to reducing the cash...

PART B The RBA intends to use open market operations in addition to reducing the cash rate. Assume that a bond with no expiration date pays a fixed $300 annual interest and is selling for its face value of $10,000. Calculate the interest yield on the bond. Will the RBA buy or sell bonds if it uses open market operations? Briefly explain. As a result of the RBA’s decision above which of these two outcomes is more likely or correct?...

Suppose the Fed decided to sell $350 billion worth of government securities in the open market...

Suppose the Fed decided to sell $350 billion worth of government securities in the open market (assume all payments are are directly deposited into or withdrawn from the banking system). What impact would this action have on the economy? Specifically, answer the following questions: Instructions: Enter your responses as a whole number. If the lending capacity or aggregate demand falls be sure to include a negative sign (-) with your answer. a. How will M1 be affected initially? increase by...

7) Skinner’s Fish Market buys fresh Boston bluefish daily for $4.20 per pound and sells it...

7) Skinner’s Fish Market buys fresh Boston bluefish daily for $4.20 per pound and sells it for $5.70 per pound. At the end of each business day, any remaining bluefish is sold to a producer of cat food for $2.40 per pound. Daily demand can be approximated by a normal distribution with a mean of 47 pounds and a standard deviation of 16 pounds. What is the optimal stocking level? Round your answer to 2 decimal places.

For a perfectly competitive market, daily demand for a good is given by P = 10...

For a perfectly competitive market, daily demand for a good is given by P = 10 - Q, where P is price and Q is quantity. Supply is given by P = 2 + Q. Suppose the government imposes an excise tax of $2 on sellers in the market. (An excise tax is a tax per unit.) (a) What is the tax revenue from the government and (b) what is the dead weight loss due to the tax policy?

What are open market operations? Explain. How can the Federal Reserve use its open market operations...

What are open market operations? Explain. How can the Federal Reserve use its open market operations to expand or contract the nation’s money and credit supply? Describe the chain of command at the Federal Reserve that oversees its open market operations. Give a detailed account of how monetary policy works to impact interest rates, aggregate demand, and the macroeconomy.

(37)Suppose the demand and supply equations in the market for fresh milk are given as D=340-3P...

(37)Suppose the demand and supply equations in the market for fresh milk are given as D=340-3P and S=260+7P in the City of Los Angeles, what is the market equilibrium price and the market equilibrium quantity for fresh milk in this market? (a)P=$6 ,Q= 412 liters (b)P=$12,Q=520 liters (c)P=$8,Q=316 liters (d)P=$9,Q=285 liters (38)Suppose now the City government in Los Angeles intervenes in the market for fresh milk referenced in Q#37 above and sets a price of $5 for a gallon of...

Consider the following daily time series for days 1-14. Use this information to answer the questions...

Consider the following daily time series for days 1-14. Use this information to answer the questions below. Day Daily Steps 1 2270 2 3869 3 3285 4 4598 5 3539 6 2474 7 2246 8 4800 9 3696 10 4817 11 3261 12 1839 13 5121 14 2800 Step 1 of 7: What is the 3-day Moving Average forecast for time period 4? Round to the nearest whole number. Step 2 of 7: What is the 3-day Moving Average forecast...

Subjects