Kelly opens an aquarium store in a lively shopping mall and finds business to be booming, but she often stocks out of key items customers want. she decides to experiment with inventory control methods such as using a fixed order quantity (fqs) and/or fixed order period (fps) systems. the fluval 303 pump, a high margin and profitable pump, is one of her best sellers, but it stocks out frequently. she collects the following data about the pump’s sales.
demand = 10 units per week store operates 45 weeks/year
order cost = $30/order lead time = 3 weeks
item cost = $80/pump standard deviation of weekly demand = 4 units
inventory-holding cost = 15% per year desired service level = 90 percent
1. if the current order quantity used by kelly is 20 pumps per order, how much money can she save by adopting an economic order quantity (eoq) policy?

a. less than $50
b. more than $50 but less than or equal to $100
c. more than $100 but less than or equal to $150
d. more than $150

if kelly decides to use a fixed-period system (fps), the fixed-order interval (t) based on store economics is:
a. less than or equal to 5 weeks.
b. more than 5 but less than or equal to 10 weeks.
c. more than 10 but less than or equal to 15 weeks.
d. more than 15 but less than or equal to 20 weeks.

Needs 83,000 optical switches next year (assume same relevant range). by outsourcing them, worldsystems can use its idle facilities to manufacture another product that will contribute $ 140,000 to operating income, but none of the fixed costs will be avoidable. should worldsystems make or buy the switches? show your analysis.

All else being equal, which is true about a firm with high operating leverage relative to a firm with low operating leverage? select one: a. a higher percentage of the high operating leverage firm's costs are fixed. b. the high operating leverage firm is exposed to less risk. c. the debt payments limit the high operating leverage firm's opportunities to turn a big profit. d. the high operating leverage firm has more debt.

Arriving and delivering a load of company executives for a business meeting at a destination far from home base requiring an overnight stay, a company’s pilot requested approval from the company finance office to pay to either have the company’s jet brought into the fbo's hangar overnight to protect it from a forecast snowfall or to have it de-iced by the fbo the following morning well-before scheduled departure. the company was under considerable financial pressure at the time, and the pilot’s requests were denied because of the cost. so, early the following morning, the pilot was up on the wing of the jet sweeping off an accumulation of snow and ice with a borrowed push broom in preparation for the scheduled departure with the executives, but slipped and fell to the ground, suffering a broken neck. the business was organized as a limited partnership, owned by 3 limited partners and one general partner. as a cost-saving measure, the company had dropped its workers’ compensation insurance before the accident. analyze the potential liability for the pilot’s injuries of each of the following, showing your reasoning clearly: the company the general partner the limited partners analyze how the outcome would have been different, if the business had been organized as a corporation and observed all of the formalities to legitimize its corporate status. analyze how the outcome would have been different, if the pilot had been covered by workers’ compensation insurance.