A critical piece of operational equipment contains 30 parts of the same type. The equipment operates 24 hours a day and the critical pieces have a predicted failure frequency of 10,000 hours. Two inventory supply policies are under evaluation; one based on operational probability and the second on annual costs. If spares are procured at 90-day intervals, how many spares should be carried in the inventory to ensure a 95% probability of success?

λ = 1/10,000 = 0.0001
K λt = 30*0.0001*(90*24) = 6.48

Using figure 15.8b from the number of spares is about 11 to ensure 9% probability of success. If spares are procured as part of an EOQ policy with: cost per unit of $100, cost of preparation and shipping of $25, an estimated cost of managing an item in inventory of 25% of the inventory value, what is the order quantity and annual costs? Which policy for ordering spares would you recommend?

Consider the following condensed financial statements of money freedom comma inc. the company's target rate of return is 30%: (click the icon to view the comparative balance sheet.) (click the icon to view the income statement.) requirements 1. calculate the company's roi. round all of your answers to four decimal places. 2. calculate the company's profit margin ratio. interpret your results. 3. calculate the company's asset turnover ratio. interpret your results. 4. use the expanded roi formula to confirm your results from requirement 1. interpret your results. 5. calculate the company's ri. interpret your results. requirement 1. calculate the company's roi. round all of your answers to four decimal places. begin by selecting the formula to calculate return on investment (roi), and then enter the amounts to calculate the company's roi. (round your calculations to four decimal places and enter your answer as a percent, x. xx%)