Blog

Question 4: [26 points]  Report four digits after the decimal for probability-related values. Report two digits after the decimal for quantity-related values. Big Top Pub serves craft beers from microbrewers nationwide as well as snack foods. The manager buys a particular sour beer from a brewing company in Maine that requires three weeks for delivery. The sour beer costs $1 a bottle and may be purchased in any quantity. The fixed ordering cost is $70, and inventory holding costs are calculated using an annual inventory carrying rate of 22 percent. Based on historical data, the weekly demand for the sour beer is normally distributed with a mean of 120 bottles and a standard deviation of 40 bottles. The Big Top Pub manager currently has a policy to place a replenishment order when there is 4-weeks’ supply left. Each order consists of 6-weeks of supply. For the purposes of your calculations, you may assume that there are 48 weeks in a year and that all excess demand is fully backlogged. A. [6 points] What are the reorder level and order quantity currently used at Big Top Pub for the sour beer? B. [10 points] What is the proportion of demand that cannot be satisfied immediately from stock under the current policy?  C. [10 points] What reorder level and order quantity should the manager use if she wishes to ensure that the probability of not stocking out during the lead time is 95 percent? 

Which of the following statements is false regarding the normal distribution?

A simple ANOVA test was conducted by a telecommunications firm on the mean sales results for four different calling plans. The ANOVA null hypothesis was rejected. What does this indicate?

What does the following equal?   6!3! Divided by 4!3!

Prepaid assets are valued on the balance sheet at (2 points)

Compute the missing information. (3 points. Please write positive value as $xx,xxx and negative value as -$xx,xxx) Salaries Payable Jan 1, Year 2   $175 Salary Expense for year 2   ? Payments to Salaried Employees during year 2   $725 Salaries Payable Dec 31, year 2   $100

What is the ending balance of retained earnings as of March 31st, Year 3 (3 points):

What is the interest expense of the second installment? (3 points. Please write positive value as $xx,xxx and negative value as -$xx,xxx)

What is the annual depreciation expense for year 2011? (3 points. Please write positive value as $xx,xxx and negative value as -$xx,xxx)

Tangible long-lived assets include all of the following except (2 points)