HighLife Corporation Has the Following Information: Average Demand = 30

question 12

Multiple Choice

HighLife Corporation has the following information: Average demand = 30 units per day
Average lead time = 40 days
Item unit cost = $45 for orders of less than 400 units
Item unit cost = $40 for orders of 400 units or more
Ordering cost = $50
Inventory carrying cost = 15 percent
The business year is 300 days.Standard deviation of demand during lead time = 90
Desired service level = 95 percent
What is the TAC at $40/unit closest to?

• A)$351,750
• B)$362,325
• C)$355,840
• D)$362,240

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Definitions:

International Business

Commercial transactions that occur across country borders, involving the trade of goods, services, technology, capital, or knowledge.

International Strategy

a plan deployed by companies to expand their operations and market footprint across multiple countries, adapting to different cultural and economic environments.

Organizational Culture

Organizational culture describes the shared beliefs, values, norms, and practices that shape the social and psychological environment of a business, influencing employee behavior and corporate identity.

Level Of Technology

The current state or degree of advancement of technological resources and capabilities within a company, industry, or society.