Define the most commonly used economic cost-benefit analysis techniques
What will be an ideal response?
Net Present Value (NPV) uses a discount rate determined from the company's cost of capital to establish the present value of a project. The discount rate is used to determine the present value of both cash receipts and outlays.
Return on Investment (ROI) is the ratio of the net cash receipts of the project divided by the cash outlays of the project. Trade-off analysis can be made among projects competing for investment by comparing their representative ROI ratios.
Break-Even Analysis (BEA) finds the amount of time required for the cumulative cash flow from a project to equal its initial and ongoing investment.
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Safety stock increases when:
A) probability of a stockout increases. B) average demand increases. C) delivery speed increases. D) demand fluctuations decrease.
The optimal value of Z is:
Solve the following integer LP using branch and bound: MAX Image + 5Image subject to: Image + 10Image ? 20 Image ? 2 Image , Image ? 0 and integer A) 7. B) 6. C) 10. D) 11. E) 12.