, 02.12.2019 23:20 misswonderless

# Tobacco is shipped from north carolina to a cigarette manufacturer in cambodia once a year. the reorderâ€‹ point, without safetyâ€‹ stock, is 200 kilos. the carrying cost is â€‹\$15 per kilo perâ€‹ year, and the cost of a stockout is â€‹\$65 per kilo per year. given the following demand probabilities during the leadâ€‹ time, how much safety stock should beâ€‹ carried?

The typical consumer's food basket in the base year 2015 is as follows: 30 chickens at \$4 each 10 hams at \$5 each 10 steaks at \$8 each a chicken feed shortage causes the price of chickens to rise to \$5.00 each in the year 2016. hams rise to \$7.00 each, and the price of steaks is unchanged. a. calculate the change in the "cost-of-eating" index between 2015 and 2016. year cost of the basket 2015 \$ 2016 \$ instructions: enter your responses rounded to one decimal place. the official cost-of-eating index has by %. b. suppose that consumers are completely indifferent between two chickens and one ham. for this example, how large is the substitution bias in the official "cost-of-eating" index? the in the cost-of-eating index is %. the of inflation in the cost of eating reflects substitution bias.