It sells the right to put a brand name on products such as T-shirts, which is called license branding.
License means to rent or lease an intangible property. This is the process of creating and managing agreements between trademark owners and companies or individuals wishing to use the trademark in connection with their products for an agreed period of time in an agreed territory. Licenses are used by brand owners to extend their brands or characters to products of a completely different nature.
Examples of intangible assets include songs ("Somewhere Over The Rainbow"), characters (Donald Duck), names (Michael Jordan), and brands (The Ritz-Carlton). Any agreement to license a trademark requires a license agreement. A license agreement authorizes a company that sells products or services (licensee) to lease or rent a trademark from a trademark owner (licensor) that operates a licensing program.
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the sale of land held for investment results in the following type of gain or loss?
the sale of land held for investment results in the following type of gain or loss A. Capital
Money spent on assets with the hope that their value would rise over time is known as an investment. To invest, a current resource must be sacrificed, be it time, money, or effort.Making money from the asset that is being used is the aim of investing in the financial world. The return may also contain an unrealized capital gain (or loss), investment income such as dividends, interest, or rental income, a combination of capital gain and income, and a gain (profit) or loss realized on the sale of a home or investment. The return could potentially include foreign exchange profits or losses as a result of shifting exchange rates.Investors assert that more risky investments frequently produce larger profits. a sound fiscal
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The complete question is here:
The sale of machinery at a loss that was used in a trade or business and held for more than one year
results in the following type of loss?
A. Capital.
B. §291.
C. §1231.
D. §1245.
E. None of these.
How do banks make money from the loans they give?
The annual interest that banks charge on the money they borrow from consumers. The banks lend out the borrowed cash to individuals while earning interest each year.
Why do banks create money when they make loans?Their source of income is what they refer to as the spread, which is the difference between the interest rates they pay on deposits and the interest rates they get on loans they make. They receive interest payments on the securities they own.
People who lend money to banks are paid interest every year. The banks gain annual interest for lending out the borrowed money to individuals. The interest on that loan should be greater than the interest on the borrowing.
Since all modern money is simply credit, banks are able to literally generate money out of thin air by issuing loans. This misunderstanding might have its roots in the ostensibly miraculous simultaneous creation of entries on both the liability and asset sides of a bank's balance sheet whenever it initiates a new loan.
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If a department store fails to make the entry to accrue the finance charges due from customers,
interest revenue will be understated.
interest expense will be overstated.
accounts receivable will be overstated.
interest expense will be understated.
Interest revenue will be overstated if a department store forgets to record the entry to collect the finance costs owed by consumers.
Consumers are people or groups who don't actively engage in commercial or entrepreneurial operations and who plan to order or use purchased goods, experiences, or services primarily for their own social, familial, domestic, or other needs. The most common user of the word is someone who purchases items for their own use. On March 15, 1962, President John F. Kennedy provided the US Congress with his definition of "consumers." We are all consumers by definition, he remarked. This presentation served as the impetus for the creation of World Consumer Rights Day, which is today observed on March 15. In his address, John Fitzgerald Kennedy underlined that helping citizens exercise their rights is one of the essential duties of the government.
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Shippers Warehouse initiates a suit against Trans-State Trucking (TST) by filing a complaint. If TST files a motion to dismiss, the firm is asserting that Group of answer choices even if the facts in the complaint are true, TST is not legally liable. the facts in the complaint are not true. even if TST is legally liable, Shippers Warehouse cannot prove it. if the facts are true, Shippers Warehouse has a right to judicial relief.
If Shippers Warehouse files a complaint to start legal action against Trans-State Trucking (tst). If tst submits a move to dismiss, the company contends that it is not liable even if the allegations in the complaint are true.
The act of reporting a case to a court of law is referred to as filing a complaint.
As a result, even if the allegations in the complaint are true, trans-state trucking will not be held legally accountable if shippers decide to file a lawsuit against it and trans-state trucking decides to file a request to dismiss the suit lodged by shippers.
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Why do you think entrepreneurs set up businesses despite the risk of making a loss? Use examples to justify your answer.
The reason why entrepreneurs set up businesses even though they know there is a risk of loss is because they believe that the potential rewards outweigh the risks.
Why do entrepreneurs set up businesses regardless of risk ?Entrepreneurship is the process of creating or starting a new business venture in order to make a profit. Entrepreneurs take the risk of starting a new business in the hopes of achieving financial success, personal satisfaction, and the ability to be their own boss. They are willing to put their own time, money, and effort into creating something new and innovative.
Entrepreneurs see opportunities in the market and believe that they can create a successful business by providing a product or service that meets the needs of consumers. They are driven by a desire to be in control of their own destiny, to create something new, and to make a positive impact on the world. They also hope to generate wealth, to create jobs and to contribute to the economy.
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Which sentences identity the investing activities of a cash slow statement?
Tyler Enterprises has achieved remarkable growth in the past five years. Qualified accountants have prepared and analyzed the cash flow statement to
offer financial advice to help safeguard the future of the business. It includes details of the amount of cash flowing into and out of the business. The
statement begins with the amount of revenue that the sales team has brought in. It also involves the corresponding marketing campaign costs incurred
in the promotional exhibition. The profit was declared to the shareholders in the form of dividends. The production team undertook projects that involved
installation of automatic botting machines. New dishwashers were installed in the cafeteria as part of an efficiency improvement project. The stakes of
an old division of packing material were sold off in order to concentrate solely on present business. Old investors were issued stocks when their
convertible bonds attained maturity. Some of the old machineries in the production line were sold off as scrap while rest was revamped
The sentences that identify the investing activities of a cash slow statement are - The production team undertook projects that involved installation of automatic botting machines. New dishwashers were installed in the cafeteria as part of an efficiency improvement project. The stakes of an old division of packing material were sold off in order to concentrate solely on present business. Some of the old machineries in the production line were sold off as scrap.
What are investing activities?Investing activities include the acquisition of physical assets, the purchase of securities, and the sale of securities or assets. Cash flow from investing activities includes long-term cash uses.
Negative cash flow from investing activities may not be a bad sign if management is investing in the company's long-term health.
Therefore, the sentences mentioned above identity the investing activities of a cash slow statement.
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Answer:
"The production team undertook projects that involved installation of automatic bottling machines. New dishwashers were installed in the cafeteria as part of an efficiency improvement project" and "Some of the old machines in the production were4 sold off as scrap while rest was revamped."
Explanation:
I got it right on plato
The difference between the price the firm sells a good for and the price the firm paid other firms for intermediate goods is called A. value added. B. producer surplus. C. fixed investment. D. profit.
The difference between the price the firm sells a good for and the price the firm paid other firms for intermediate goods is called The correct answer is B. producer surplus.
Producer surplus is defined as the discrepancy between the price at which a producer is willing to offer products and the price at which he actually receives payment for his goods. A measure of producer welfare is producer surplus. The whole amount that a producer makes when they create and sell a certain amount of an item at the going rate is known as the producer surplus. The producer surplus is equal to the entire income from sales of a producer's goods less the marginal cost of production.
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according to the classical growth model, an economy that increases its saving will grow _____
During the Industrial Revolution, (mainly British) economists created the classical growth hypothesis. According to the classic growth theory, economic growth results from capital accumulation and the reinvestment of specialization-related gains.
Whats is the meaning of hypothesis?
A hypothesis is something that is neither an established theory nor a wild guess. Before a hypothesis can be called a theory in science, it must undergo extensive testing. The term is used much more liberally outside of science. A mother may have a theory about who spilled juice on the carpeting, just as a detective may have one concerning a crime. Anyone using the word hypothesis is speculating.
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Which of the following were resources and capabilities that helped Five Guys gain a competitive advantage and develop into a successful restaurant chain
The resources and capabilities that helped Five Guys gain a competitive advantage and develop into a successful restaurant chain were focusing on such details as store layout and design and also Carefully choosing the supplier of the potatoes for their fries
Focusing on store layout and design: Five Guys stores are designed to be clean, bright, and welcoming, with a focus on the open kitchen so customers can see their food being prepared.
Carefully choosing the supplier of the potatoes for their fries: Five Guys uses only potatoes from specific farms in the northwest region of the USA, which are hand-cut and cooked in peanut oil, which gives them a unique texture and flavor. This attention to detail on a key ingredient in their menu helps to differentiate them from competitors and provide a unique taste experience to customers.
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Which of these is a minimum cash account balance that is required by a bank? a. Line of credit b. Bank loan c. Cash equivalent d. Compensating balance.
Option (d) . Compensating balance is a minimum cash account balance that is required by a bank.
What is the Compensating Balance?
A Compensating balance is the minimum deposit that a borrower must keep in a bank account. An Compensating balance is that lender must hold in order for the borrower to be eligible for an installment loan or line of credit. An compensating balance is the balance that a lender must hold in order for the borrower to be eligible for an installment loan or line of credit.
Is the compensating balance a cash?
A compensating balance is the minimum balance in a bank account that a borrower agrees to hold with a lender. The purpose of this balance is to reduce borrowing costs for the lender, as the lender can invest the money in the insured bank account and retain some or all of the proceeds.
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Issues relating to business ethics often lead to _______ conflict, where there may simply not be a(n) _______ correct answer. Therefore, it may not just be a case of deciding between right and wrong but often at an individual level it involves deciding between different courses of action that different _______ both believe to be right or wrong.
There is frequently "value" conflict and no "objectively" correct answer when it comes to moral business issues. Since there are many possibilities that "Organization" and individuals both deem proper or inappropriate.
values of business- Due to val ue conflict, business ethics are not always clear-cut and frequently veer into very gray areas. As a result, it is frequently necessary to try to understand and reconcile the viewpoints of various actors. What is right and wrong for a person or a community is defined by ethics.Morality is concerned with norms, values, and beliefs embedded in social processes. The study of ethics and the application of reason to clarify specific laws and principles are the subjects of morality. The codification of rules and principles is what ethical theories do.
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Which of the following explains why the rate of change of the consumer price index (CPI) tends to overstate the actual inflation rate? A) Consumers will require more income to buy goods whose prices have increased. B) Nominal wages do not always increase by as much as prices do. (c) When real wages increase, consumers can afford higher-priced goods. D) Consumers tend to substitute lower-priced goods that may not be represented in the basket of goods. The basket of goods in the base year is frequently updated with new products
The tool used to measure inflation is the consumer price index (CPI). It is used to calculate the typical difference in costs of household consumption items between two specified periods.
What is meant by consumer price index?The method for measuring inflation is the consumer price index (CPI). It is employed to calculate the typical change in prices of household consumption items between two specified periods. Assuming constant quality, it is a composite measurement of product price trend tendencies.
Since the primary CPI uses the same basket of products month after month (although prices are adjusted every two years), it can overestimate inflation since it ignores the replacement of one similar thing for another.
A market basket of consumer goods and services is used to create the Consumer Price Index (CPI), which tracks the average change in prices paid by urban consumers over time.
Therefore, the correct answer is option d) Consumers tend to substitute lower-priced goods that may not be represented in the basket of goods.
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The consumer price index, or CPI, is the instrument used to measure inflation. option d is the correct . Customers frequently substitute lower-priced goods that may not be included in the shopping cart.
What does the term "consumer price index" mean?The consumer price index, or CPI, is used to measure inflation. It is used to calculate the typical price change of household goods over two specific time periods. It is a composite measurement of product price trend tendencies, assuming constant quality.
Although prices are adjusted every two years, the primary CPI uses the same basket of products month after month and can overestimate inflation because it ignores the substitution of one similar item for another. The Consumer Price Index (CPI), which tracks the average change in prices paid by urban consumers over time, is created by using a market basket of consumer goods and services.
As a result, option d is the correct response. Customers frequently substitute lower-priced goods that may not be included in the shopping cart.
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A $2.00 tax levied on the sellers of birdhouses will shift the supply curve a. downward by less than $2.00.
b. downward by exactly $2.00. c. upward by exactly $2.00. d. upward by less than $2.00.
The supply curve will rise upward by exactly $2 if sellers of birdhouses are subjected to a tax of $2.00.
A Supply Curve: What Is It?The correlation between the cost of a good or service and the quantity supplied over a given time period is depicted graphically in the supply curve. A typical illustration will show the price on the left vertical axis and the supplied quantity on the right horizontal axis.
How a Supply Curve Works ?The law of supply is expressed by a supply curve that moves upward from left to right: All other things being equal, the quantity supplied rises when a commodity's price rises.
Pay attention to the fact that this formulation suggests that quantity is the dependent variable and price is the independent variable. The independent variable typically appears on the horizontal or x-axis in most fields, with economics being an exception.
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when palpating a patient's pulse, you note that it is grossly irregular. you should:
When palpating a patient's pulse and noting that it is grossly irregular, it is important to report this finding to the patient's healthcare provider or physician as soon as possible.
The healthcare provider will likely want to further assess the patient, perform a physical examination and may order additional diagnostic tests such as an electrocardiogram (ECG) or echocardiogram to investigate the cause of the irregular pulse .Additionally, it is essential to monitor the patient's vital signs and symptoms closely and take actions to ensure the patient's safety and comfort. In case of severe symptoms such as chest pain, shortness of breath, or fainting, it is important to call emergency medical services immediately.
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During a listing presentation a seller asked a salesperson to: give an opinion of the list price, not disclose the seller's pending divorce, contact the seller at least weekly and give an opinion of the validity of the title. Which of the following should the salesperson NOT do?
1 Give an opinion of the list price.
2 Suggest improvements to increase value.
3 Contact them at least weekly.
4 Give an opinion of the validity of the title.
The salesperson during the listing of presentation should do all except give them an opinion on the validity of the title.
Which of the following should the salesperson NOT do?Opinion regarding the validity of the title is a legal matter as the validity is determined by the advocate through legal jurisprudence and the salesperson should not have any opinion on this. A salesperson is an individua who is responsible for the sale of the product launched by any firm.
he should know all the details of the product like its use, benefits, cost and the why the product is better than other products available in the market.
He also has to report the firm about the number of sales he has done within a week, within a month and within a year. His salary totally depends on the number of sales he has done. He should also possess the knowledge about the target audience to whom he is going to sell the product.
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making the right choices with your money—managing your money—involves knowing how . . .
This means learning how to pay your bills, how to borrow and save money responsibly, and how and why to invest and plan for retirement.
What Is Financial Literacy?Money management is a personal skill that not everyone learns but one that is beneficial to you throughout your life. It's difficult to constantly make the proper choices when it comes to big purchases and investments because of the money that comes in and goes out, the due dates, finance charges, and fees associated with invoices and bills, as well as the general obligation.
Given how important it is, you would assume that this ability would be taught in high school or even earlier. Unfortunately, this is not the case. Understanding personal credit fundamentally and being willing to accept personal responsibility are prerequisites for managing your own money.
In other words, you avoid drowning in debt and make your payments on time.
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________ is the investment in social relations with the expectation of returns in the marketplace.
A) Social capital B) Social stock C) Market stock D) Media capital
Social Capital is the investment in social relations with the expectation of returns in the marketplace.
What do we mean by social capital?
Social capital is a set of shared values or resources that allows individuals to work together in a group to effectively achieve a common purpose. Social capital can also be thought of as the potential ability to obtain resources, favors, or information from one's personal connections.
It allows people to work together and to access benefits from social relationships. Social capital allows modern economies to function efficiently. Our society, economy, institutions, and political system could not exist without social capital.
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Which of the following is not a risk normally associated with Bottom of the Pyramid strategies?
A. A low-end version of a brand may detract from the overall brand attractiveness.
B. The new low-cost products they develop may cannibalize the sales of their core products.
C. Entrenched competitors can impact the ability of the new firm to enter the market successfully.
D. New products may be perceived as exploiting the privileged customer with substandard products.
New products may be perceived as exploiting the privileged customer with substandard products is not a risk normally associated with Bottom of the Pyramid strategies.
Hence, Option D is correct
BOP, when used in a broader sense, refers to a market-based approach to economic growth that aims to simultaneously reduce the world's widespread poverty while generating growth and financial success for multinational corporations (MNCs). Topics that are related to poverty include income market economies and wealth distribution.
Companies that employ effective marketing tactics can access fortunes at the base of the pyramid while also making a positive impact on this sizable population's quality of life. Bottom-of-the-pyramid marketing focuses on offering the low-income market quality and value for their money. Businesses can look for opportunities in BoP markets to further their corporate social responsibility (CSR) goals and/or to benefit from factors like increased profits, using BoP markets to test goods and services created using new technologies, etc.
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What extra qualifications are required for a broker's application of a community association manager
The applicant for a broker's application of a community association manager must finish an additional 75 hours of approved courses.
What is a broker's obligation in an agency relationship?All of the obligations a real estate agent or broker has in their relationship with a client are known as fiduciary duties. The abbreviation OLDCAR can be used to condense these obligations, which are all in the client's best interest: obedience, loyalty, disclosure, confidentiality, accounting, and reasonable care.
What are the three elements of brokerage success?The commercial real estate industry depends on timing, insider knowledge, and significant relationships. Being in the right location at the right time, knowing the right people, and possessing knowledge are the three requirements for success.
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How do long term goals differ from short-term goals principles of financial planning?
Setting short-term financial objectives include doing everything you can to enhance your financial situation in the interim.
What exactly is short-term lending?Business finance from short-term, typically less than a year, sources is referred to as short-term financing. The same assists the organization in generating cash for expenditures, which are often less in scale.
What is short-term Investment ?Toutes droits réservés. referring to anything lasting a year or less, including investments, financial plans, and other things. Financial plans and investments for the short term typically include less uncertainty than those for the long term.
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Immersion in water or fire as a result of a crash happens in less than ______ of all crashes annually.
In Florida or the United States as a whole, fewer than 1% of all car incidents result in fire or submersion in water. For people aged 4 to 33, the primary cause of death is cardiovascular disease.
What kind of car accident occurs most frequently?The most frequent kind of collisions are rear-end collisions. The NHTSA claims that rear-end crashes take place when one vehicle hits the back of another vehicle, as the term implies.
How may an automobile accident be explained?What details should I include in my account of my car accident? Don't guess on anything and stick to just giving the facts as you remember them, including what the other motorist was doing at the time of the impact.
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Dustin works for a company in Colorado that sells camping equipment. A customer comes in and tells Dustin that she wants a tent to go camping in the mountains with her family of four. Dustin recommends a lightweight tent that has good reliability ratings and shows her a floor model of the tent. She likes it and purchases it. A month later, Dustin receives notice that she is suing his company for breach of the warranty of fitness for a particular purpose. She alleges that she had to turn back from her quest to the top of Mount Everest because the tent Dustin sold her was not sturdy or warm enough. Explain why Dustin did not or did not breach the warranty of fitness for a particular purpose.
I am working in a Colorado that sells camping equipment. A customer asks for a tent to go on camping in the mountains. I recommended a lightweight tent with a good reliability rating. That customer purchased that tent and after a month, she sued my company for breaching of warranty of fitness for a particular purpose. But I did not breach the warranty of fitness for a particular purpose because:
She alleges that she had to come back from her quest; she had no proof of doing that.There is no sign that she suffered an injury because of that tent.I did not deliver the goods which were not fit for her purpose but she was not clear and particular in letting me know her purpose.She told me she wants a tent for mountain camping but she did not address that she is going to Mount Everest for camping. If she let me know that particular thing then I must have suggested something which could survive there.The economic reliability of an industrial organization is determined with the aid of the following elements: reliability of control system, technical development, conservation activities, human resources management, financial and financial development, marketing sports, and production management.
However clinical efforts in this place certain considerable and evaluative troubles of financial reliability of commercial corporations in the real sector of the Russian economy have now not but received due theoretical interest and stay unsettled.
The perception of “economic reliability” is not simplest the principle component of an enterprise’s powerful improvement; it is also a guarantee of its further lucrative lifestyles in marketplace conditions.
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a power analysis reveals that the study being run has ow power. which method will not result in an increase in statistical power
A power analysis is a computation that determines the minimum sample size needed for an experiment given the necessary statistical power, effect size, and significance level.
What is power analysis?A power analysis is a computation that determines the minimum sample size needed for an experiment given the necessary statistical power, effect size, and significance level. It aids in determining if an experiment or survey result is genuine and noteworthy or the product of chance.
What happens when variance increases?The spread of scores in a data set normally increases as the variance of that data set increases. The main reason for this is because variance is a number that represents the average departure of each data point from the mean. When the variance is considerable, the data points are far off from both the mean and one another. The average of the squared deviations from each point to the mean is the variance. Calculating the variance follows a similar procedure to finding the MAD, or mean absolute deviation.
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Which of the following topics refer to macroeconomics? A. The market for tablets and other portable electronic devices has been steadily growing over the last 5 years. B. Consumer confidence is at an all-time high and the U.S. economy is growing. C. There is a paper towel shortage due to the COVID-19 situation. D. There is an increase in the demand for thermometers. E. There is an increase in the demand for take-out meals
From the following, the one which refers to macroeconomics is that consumer confidence is at an all-time high and also the U.S. economy is growing.
Macroeconomics tends to focus on the performance of the economies. So, the Macroeconomics is considered to be the branch of economics which thus studies the economy as a whole. Thus, the objective of macro economics is in order to maximize the welfare of an economy.
However, here the consumer confidence is at an all-time high which is due to macroeconomics. Macroeconomics tends to study an economy as a whole by mainly focusing on the aggregate measures.
Hence, option B is correct.
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United and Delta recently cut their prices for flights between Los Angeles to Seattle to $199. In response, Alaska Airlines cut their price from $239 to $199 for flights between Los Angeles and Seattle in order to remain competitive. Based on this example, what degree of competition exists in the airline industry?
The degree of competition exists in the airline industry is Oligopoly.
An oligopoly is when a small group of big sellers or manufacturers control a sizable portion of a market or an entire industry. The desire to maximize profits frequently gives rise to oligopolies, which can lead to corporate cooperation. Less competition, higher consumer pricing, and lower employee compensation are the results. Many industries, including civil aviation, energy providers, telecommunications companies, rail freight markets, food processing, funeral services, sugar refining, beer manufacture, pulp and paper manufacturing, and auto manufacturing, have been characterized as being oligopolistic. Most nations have legislation that forbids engaging in anti-competitive behavior. EU competition law forbids the use of anti-competitive strategies such price-fixing, influencing market supply, and interfering with rival trade.
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suggests that disparate impact exists if a selection criterion results in a selection rate for a protected class that is less than 80 percent of that for the majority group.
Disparate impact occurs when a selection criterion has a disproportionately negative impact on a particular group of people or groups of people, and particularly those which are protected by law.
In this current situation, the selection rate for the protected class must be 80 percent or less than the majority group. That is, if the majority group has a selection rate of 80 percent, then the selection rate for the protected class must be 64 percent or less than 64, for there to be a disparate impact. This type of discrimination is illegal and must be dealt with to ensure fair recruitment.
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What should you consider before shopping?
You must first decide if you actually have the funds to purchase the item. Be truthful about how frequently you plan to use something and consider if you can actually afford it.
What to consider before shopping?Take a step back before shopping anything you "need," and consider if you actually need to buy it. Make sure the purchase won't put you in debt before making it. Furthermore, you don't want to spend money on this item at the expense of anything else you might like to purchase or something you actually need.
Decide how frequently you will use the thing after that. It seldom makes sense to finish the transaction if you are buying something you are expected to use more than once or twice.
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As the price of milk increases, producers are normally willing to supply greater quantities. This response is known as the law of Group of answer choices demand averages increasing costs supply variable proportions
The law of supply is a microeconomic principle that asserts, with all other things being equal, that if the cost of an item or service rises, providers will offer more of those goods or services, and vice versa.
Demand declines when price rises and decreases in quantity needed (but demand itself stays the same). Quantity requested rises when the price declines. The Law of Demand is this. An inverse connection is shown on a graph as a line that slopes downhill from left to right. Size of the market, to start If there are more (fewer) businesses, the supply curve moves out (in). For instance, if there are more dairy farmers, more milk is produced, and the supply spreads.
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The law of supply is a microeconomic principle that states that as the price of a good or service rises, providers will offer more of those goods or services, and vice versa.
When prices rise and the amount required lowers, demand falls (but demand itself stays the same). When the price falls, the quantity sought climbs. This is the Law of Demand. On a graph, an inverse connection is represented as a line that slopes downward from left to right. To begin, consider the market size. The supply curve shifts out as there are more (or fewer) enterprises (in). For example, as the number of dairy producers increases, more milk is produced, and the supply spreads.
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What are the five 5 important factors that she needs to consider before buying the business?
The important factors that she/he needs to consider before buying the business is Location, Furniture, fixtures and equipment, Inventory, Trained employees, Established customer base, Existing cash flow.
If you include the time needed to find a potential target firm, the process of buying a business might take longer and involve months of negotiation. However, it may be a gratifying process that results in the acquisition of a prosperous company with proper planning and the assistance of an advisory team.
You are buying an income stream when you buy an existing company. The cash flow need to be sufficient to cover your living expenses as well as the new debt service to be paid to the bank, SBA, vendor, or whoever else.
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Ram Roy’s firm has developed the following supply, demand, cost, and inventory data. Allocate production capac- ity to meet demand at a minimum cost using the transportation method. What is the cost? Assume that the initial inventory has no holding cost in the first period and backorders are not permitted.
Supply Available:
Period Regular time Overtime Subcontract Demand forecast 1 30 10 5 40
2 35 12 5 50
3 30 10 5 40
Initial inventory 20 Units
Regular time cost per unit $100
Overtime cost per unit $150
Subcontract cost per unit $200
Carrying cost per unit per month $4
The total cost is = $13260. Here, we want to keep supply costs as low as possible given the total demand. Inventory on hand is 20 with a total demand forecast for three periods of 140.
Period 1: Demand for Period 1 is 40 units, Production for Period 1 is 30 Regular + 20 Inventory = 50 units, and Inventory after Period 1 is 10 units. Cost for Period 1 is $30*$100, which is $3000, and Inventory Carrying Cost from Period 1 to Period 2 is $10*$6, which equals $60.
Period 2: Demand for Period 2 is 45 units, Production for Period 2 is 30 Regular + 10 Inventory + 5 Overtime = 45 units, and Inventory after Period 2 is 0 units. Cost for Period 3 is $3800 (30*$100 + 5*$160). From Period 2 to Period 3, the cost of carrying inventory was $0.
Period 3: Demand for Period 3 = 55 units, Production for Period 3 = 40 Regular + 15 Overtime = 55 units, and Inventory after Period 3 = 0 units
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