Bulldog Smart phone has product that shows a constant annual demand of 40,000 un
ID: 2756190 • Letter: B
Question
Bulldog Smart phone has product that shows a constant annual demand of 40,000 units. Each unit costs $12. Ordering costs are $10 per order and the holding costs are 10% of the value of the inventory. Bulldog has 365 working days per year, and the lead-time is 10 days. Identify the Economic Order Quantity, the reorder point number of orders per year, ordering cycle time and the total annual inventorying cost. Stock price of the Bulldog stock is currently $41 per share. The following probability distribution shows how the price per share is expected to change over a one-month period. Using random numbers 0.9407, 0.1091,0.8083,0.1941 simulate the price per share for the next four months. What is the final simulated price per share? Bulldog is considering investing some many that was inherited. The following table gives the profits that would be realized daring the next year for three different options? 30 chance of a Good Economy, what is the solution?Explanation / Answer
Random Number Interval Price
0.9407 43
0.1091 40
0.8083 43
0.1941 41
Workings:
Share Price Interval Price Final Price Probability Cumulative probability Interval
41 -1 40 0.15 0.15 001<015
41 0 41 0.25 0.40 015<040
41 1 42 0.30 0.70 040<070
41 2 43 0.30 1.00 070<100
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