Target purchases home goods made by a supplier in China. Target's stores in the United States sell 200,000 units of home goods e
1 answer:
Information Provided:
Yearly Demand (D) = 200,000 × 12 = 2,400,000 units
Ordering Cost (S) = $500 each order
Carrying Cost (H) = 20% of the Unit Price = $10 × 20% = $2
Cost per Unit = $10
Calculations:
1) Optimal Order Quantity =
Optimal Order Quantity =
2)
Annual Holding Expense = (34,641 / 2) × 2
Annual Holding Expense = $34,641
3) Orders Each Year = Yearly Demand / Optimal Order Quantity
Orders Each Year = 2,400,000 / 34,641
Orders Each Year = 69.2820646
Orders Each Year = 69 (Approximately)
4) Yearly Transportation Variable Cost = Cost per Unit × Yearly Demand
Yearly Transportation Variable Cost = $0.10 × 2,400,000
Yearly Transportation Variable Cost = $240,000
5) Yearly Clerical Expense = Orders Each Year × Cost Each Order
Yearly Clerical Expense = 69.282 × $500
Yearly Clerical Expense = $34,641
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Answer:
Explanation:
(a). By plotting the data on an Excel spreadsheet, the uploaded image below represents our findings
(b) The sample correlation coefficient is calculated using the Excel Correlation function as follows;
Admission Rate (%) 4-Year Graduation Rate (%)
44 73
71 62
29 89
39 86
66 55
28 73
54 63
10 88
26 84
43 77
76 71
67 68
6 86
66 59
81 66
18 88
31 71
9 84
15 86
8 88
17 84
56 62
51 79
54 68
75 50
13 86
40 70
67 68
41 47
68 71
∴ The calculated value of the sample correlation coefficient is = -0.76
This indicates that the two variables exhibit a moderately linear inverse correlation.
Cheers, I hope this is useful.
