Refresher - MATHEMATICS Quiz 25
PROBLEM 1:
Thomas Jones Manufacturing Co. has asked you to check a labor standard
prepared by a recently terminated analyst. Your first task is to determine the
correct sample size. Your accuracy is to be within ± 5% and your confidence level
at 95%. The standard deviation of the sample is 1.0 and the mean is 3. The
number of standard deviations required for desired leevl of confidence of 95% is
1.96. What sample size would you recommend?
2
⎛ ZS ⎞
Hint : n = ⎜
⎝ h x ⎟⎠
Solution:
S = 1.0 (standard deviation)
Z = 1.96 (no. of standard deviations required for a level confidence of 95%)
h = 0.05 accuracy level (acceptable error)
x = 3 (mean of initial sample)
2
⎛ ZS ⎞
n= ⎜ ⎟
⎝h x⎠
2
⎡ 1.96(1) ⎤
n= ⎢ ⎥
⎣ 0.05(3) ⎦
n = 171
, Refresher - MATHEMATICS Quiz 25
PROBLEM 2:
Pepsi Co. Inc. manufacturer and distributor of drinks, A and B provides the
following in a recent annual report (in billion dollars). Determine the Pepsi Co.’s
turnover.
Net revenue $32.5
Cost of goods sold $14.2
Inventory:
Raw material inventory = $0.74
Work in process inventory = $0.11
Finished goods inventory = $0.84
Solution:
Inventory turnover = the second measure of supply chain performance
Cost of goods sold
Inventory turnover =
Average inventory investment
Average inventory investment = 0.74 + 0.11 + 0.84 = $1.69
14.2
Inventory turnover = = 8.4
1.69
PROBLEM 1:
Thomas Jones Manufacturing Co. has asked you to check a labor standard
prepared by a recently terminated analyst. Your first task is to determine the
correct sample size. Your accuracy is to be within ± 5% and your confidence level
at 95%. The standard deviation of the sample is 1.0 and the mean is 3. The
number of standard deviations required for desired leevl of confidence of 95% is
1.96. What sample size would you recommend?
2
⎛ ZS ⎞
Hint : n = ⎜
⎝ h x ⎟⎠
Solution:
S = 1.0 (standard deviation)
Z = 1.96 (no. of standard deviations required for a level confidence of 95%)
h = 0.05 accuracy level (acceptable error)
x = 3 (mean of initial sample)
2
⎛ ZS ⎞
n= ⎜ ⎟
⎝h x⎠
2
⎡ 1.96(1) ⎤
n= ⎢ ⎥
⎣ 0.05(3) ⎦
n = 171
, Refresher - MATHEMATICS Quiz 25
PROBLEM 2:
Pepsi Co. Inc. manufacturer and distributor of drinks, A and B provides the
following in a recent annual report (in billion dollars). Determine the Pepsi Co.’s
turnover.
Net revenue $32.5
Cost of goods sold $14.2
Inventory:
Raw material inventory = $0.74
Work in process inventory = $0.11
Finished goods inventory = $0.84
Solution:
Inventory turnover = the second measure of supply chain performance
Cost of goods sold
Inventory turnover =
Average inventory investment
Average inventory investment = 0.74 + 0.11 + 0.84 = $1.69
14.2
Inventory turnover = = 8.4
1.69
