What is the difference between an insurance premium and an insurance deductible? How are they related?
What will be an ideal response?
An insurance premium is the amount you pay monthly or annually for insurance coverage. Insurance premiums are determined by the amount of coverage you are purchasing, the risk associated with the item or activity being insured (you will pay more for life insurance if you skydive regularly than someone who does not), and the amount of your deductible. A deductible is how much the policy owner has to pay for a claim before the insurance company pays their part. A deductible is a form of self-insurance—the amount of risk you are willing to bear vs. the amount of risk that is covered by your insurer. Premiums for an insurance policy with a relatively large deductible tend to be less than for a policy that has a lower deductible.
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Which of the following is most likely true of a sales force?
A) The performance difference between an average salesperson and a top salesperson is generally substantial. B) The cost of replacing a salesperson is usually low because minimal training is necessary. C) A sales force with many new people is typically more productive than one whose members have been around for a long time. D) Individuals within a sales force generally perform at the same level of efficiency. E) On-site sales training is more efficient and less costly than e-learning programs.
If the daily demand is 50 and the lead time in days is 4, what is the reorder point?
A) 200 B) 220 C) 240 D) 260