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Defined policy initiative to reduce Polluted Waters_Cost Benefit Assignment_Answer

Defined policy initiative to reduce Polluted Waters_Cost Benefit Assignment_Answer

Defined policy initiative to reduce Polluted Waters_Cost Benefit Assignment_Answer

Defined policy initiative to reduce Polluted Waters_Cost Benefit Assignment_Answer

Defined policy initiative to reduce Polluted Waters_Cost Benefit Assignment_Answer

Defined policy initiative to reduce Polluted Waters_Cost Benefit Assignment_Answer

Conduct a benefit-cost analysis for a defined policy initiative to reduce Polluted Waters. Suppose that a proposal to solve your environmental concern (e.g. clean up a polluted river and convert it to a boatable/swimmable river) is expected to generate $400,000 (or any amount you see fit to use) in benefits every year, starting next year, for the next 5 years. Calculate the present value of this project using a social discount rate of 3% and assuming inflation is 2% (thus a nominal social discount rate of 5%). Next calculate the present value using the same inflation rate but a social discount rate of 1%. Show your calculations in a table such as the one below.
If the cost of improving the environmental concern is say $1,800,000 (or any amount you see fit to use) in the present, would the project be feasible? Use the Present Value of Net Benefits to support your decisions. Explain how this differs from the Benefit Cost Ratio. Discuss the importance of choosing the social discount rate and how society may be inappropriately discounting the benefits of environmental sustainability.
Discuss the limitations of benefit-cost analysis that are of concern to this particular situation.

a) project using a social discount rate of 3%

b) project using a social discount rate of 1%

If we use the befit cost ratio, then the benefit cost ratio
a) Benefit cost ratio of project using a social discount rate of 3%

b) Benefit cost ratio of project using a social discount rate of 1%

Discuss the importance of choosing the social discount rate and how society may be inappropriately discounting the benefits of environmental sustainability.

Discuss the limitations of benefit-cost analysis that are of concern to this particular situation.

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BSOP 434 week1_answer_Complete_Detailed solution

BSOP 434 week1_answer_Complete_Detailed solution

BSOP 434 week1_answer_Complete_Detailed solution

BSOP 434 week1_answer_Complete_Detailed solution

BSOP 434 week1_answer_Complete_Detailed solution

BSOP 434 week1_answer_Complete_Detailed solution

2. Distinguish between possession, form, time, and place utility.
.

4. Why do contemporary supply chains need to be fast and agile?

8. Discuss some of the ways that inventory can be reduced in the supply chain.

5. Distinguish between a fixed order quantity and fixed order interval system. Which one generally requires more safety stock? Why?

9. What are implications of the JIT approach for supply chain management?

PART III

Lab Assignment:

1. After making some wise short-term investments at a race track, Chris Low had some additional cash to invest in a business. The most promising opportunity at the time was in building supplies, so Low bought a business that specialized in sales of one size of nail. The annual volume of nails was 2,000 kegs, and they were sold to retail customers in an even flow. Low was uncertain of how many nails to order at any time. Initially, only two costs concerned him: order-processing costs, which were $60 per order without regard to size, and warehousing costs, which were $1 per year per keg space. On average, the rented warehouse space is only half full. This meant that Low had to rent a constant amount of warehouse space for the year, and it had to be large enough to accommodate an entire order when it arrived. Low was not worried about maintaining safety stocks, mainly because the outward flow of goods was so even. Low bought his nails on a delivered basis.

Question 1: Using the EOQ methods outlined in Chapter 9, determine how many kegs of nails Low should order at one time.

Step 2: Low-Quantity Discount

Question 2: Assume that all conditions in Question 1 hold, except that Low’s supplier now offers a quantity discount in the form of absorbing all or part of Low’s order-processing costs. For orders of 750 or more kegs of nails, the supplier will absorb all order-processing costs; for orders between 249 and 749 kegs, the supplier will absorb half. What is Low’s new EOQ? (It might be useful to lay out all costs in tabular form for this and later questions.)

Step 3: Low Rent

Question 3: Temporarily ignore your work on Question 2. Assume that Low’s warehouse offers to rent Low space on the basis of the average number of kegs that Low will have in stock, rather than on the maximum number of kegs that Low would need room for whenever a new shipment arrived. The storage charge per keg remains the same. Does this change the answer to Question 1? If so, what is the new answer?

Step 4: New EOQ

Question 4: Take into account the answer to Question 1 and the supplier’s new policy outlined in Question 2, and the warehouse’s new policy in Question 3. Then determine Low’s new EOQ.

Step 5: Financing Inventory

Question 5: Temporarily ignore your work on Questions 2, 3, and 4. Low’s luck at the race track is over; he now must borrow money to finance his inventory of nails. Looking at the situation outlined in Question 1, assume that the wholesale cost of nails is $40 per keg and that Low must pay interest at the rate of 1.5% per month on unsold inventory. What is his new EOQ?

Step 6: Final EOQ

Question 6: Taking into account all of the factors listed in Questions 1, 2, 3, and 5, calculate Low’s EOQ for kegs of nails.

For getting the instant digital download solution, Please click on the “PURCHASE” link below to get BSOP 434 week1_answer_Complete_Detailed solution

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