Insurance fees

This is a two part question with two subparts for each part. Please 100-200 words each subpart. And also use only websites that are based in the United States. Again, only websites.

Part 1(a)

The three curves that are shown in the figure are the ordering cost curve, the carrying cost curve and the total cost curve. The ordering cost curve is the curve that shows the changes in cost with additional inventories being included in the order. As shown, it is expected, that ordering cost will decrease with increase in units. The other curve shows the carrying costs. The carrying cost are charged per item hence will have a curve with a positive constant slope. The total cost mimics the additional effect of the other two curves. The EOQ is the point where the total cost is minimum. It shows the number of units that should be ordered.

Part 1(b)

After reviewing Figure 6.3, my assessment is as follows

The Carrying Cost Curve represents all costs associated with keeping inventory on hand and can be found by dividing an entity’s currently held inventory by total expenses incurred for holding them. Examples of such costs would include (but are not limited to) storage fees, taxes, opportunity costs, and insurance fees. (Kenton, Kindness,2020)

Ordering Cost Curve represents all costs incurred from obtaining more inventory. Such cost includes (but are not limited to) purchase order preparation, administration costs, and inspection costs. (accounting-simplified.com, n.d.)

Figure 6.3 shows the carrying cost curve ascending and moving away from the descending ordering cost curve, suggesting that as more inventory is held, carrying cost will increase and ordering cost will decrease, demonstrating the inverse relationship they have with one another. When one rises, the other will essentially fall.

The Curve for Total Cost of Carrying and Ordering represents Carrying Cost and Order Cost combined with the lowest point of the curvature conveying the carrying cost and the ordering cost are the same and at a minimum. (Render et al.,2017, p 190-192)

Optimal Order Quantity (or economic order quantity (EOQ)) is the point where the Carrying and Order Costs intersect; both values become equal and represent the most cost-effective amount in which to order a product at a specific time. (Rae, 2019)

So, in light of the Optimal Order Quantity representing the least of both costs, and the minimum total cost also represents the aggregate value for both costs; they coincide with one another.

Reference:

Kenton, W., Kindness, D. (2020, November 26th) Carrying Cost. Retrieved from https://www.investopedia.com/terms/c/carrying-cost…

Render, B., Stair, R. M., Hanna, M. E., & Hale, T. S. (2017). Quantitative Analysis for Management (13th ed.). Upper Saddle River, NJ: Pearson.

Accounting-Simplified.com (n.d.) Economic Order Quantity (EOQ). Retrieved from https://accounting-simplified.com/management/inven…

Rae, S. (2019, March 8th) How to Determine the Optimal Order Quantity. Retrieved from https://smallbusiness.chron.com/determine-optimal-…

Part 2(a)

The textbook definition of stress is described as “a feeling of tension that occurs when a person perceives that a given situation is about to exceed his or her ability to cope and consequently could endanger his or her well-being (Colella, Hitt, Miller, & Triana, 2017).” Stress tends to increase as we grow older and have more responsibilities. There are many types of stress, but one in particular manifests in the workplace. It surges from the overwhelming sensation that we cannot match and fulfill the tasks that our workplace and firm require us to accomplish. According to the demand-control model, “experienced stress is a function of both job demands and job control. Stress is highest when demands are high, but individuals have little control over the situation (Colella, Hitt, Miller, & Triana, 2017).” Stress in the demand-control model emerges from workplace demands faced by a manager and the control that the manager possesses in meeting those demands. I certainly experienced stress under the demand-control model in my decade in the U.S. Navy; the amount of stress tied to completing a critical mission while sleep-deprived and in harsh living conditions was insurmountable at times. Critical factors that may trigger stress in my workplace are the lack of personnel, being away from loved ones, the unpredictability of operations, lack of time for home responsibilities, long working hours before and after deployment (U.S. Navy, 2012). Beyond the demand-control model, the effort-reward imbalance model focuses on two stressors described as “the effort required by an associate or manager and the rewards an individual receives as a result of the effort (Colella, Hitt, Miller, & Triana, 2017).” The theory behind the effort-reward imbalance model depicts that, in most cases, high effort corresponds to a low reward, thus creating negative emotions that could become harmful. In an effort-rewards imbalance scenario, the manager or associate is driven by the hopes that the upper management recognizes the individual at one point. Such exerted effort generally leads to physical and mental injury if not taken seriously.

References

Colella, A., Hitt, M., Miller, C., & Triana, M. (2017). Organizational Behavior. Wiley.

U.S. Navy. (2012, April 4). Operational Stress Control. Retrieved from Navy Leader’s Guide for Managing Sailors in Distress: https://www.med.navy.mil/sites/nmcphc/Documents/LG…

Part 2(b)

Stress can be defined as “a feeling of tension that occurs when a person perceives that a given situation is about to exceed their ability to cope and consequently could danger their wellbeing” (Hitt, Miller, Colella, & del Carmen Tariana, n.d. p.220). Stress also can be described as anything that impacts one’s usual state of functioning.

The demand control model is utilized to recommend that capable stress is an activity of both job demands and job control. Stress is inflated when certain demands are excessive, but individuals have small scale control over the situation. Under the demand control model there are two significant factors that play a role in creating stress in the work environment. These two factors are: “1. The workplace demands faced by an associate or manager, 2. The control that an individual has in meeting those demands” (Hitt, Miller, Colella, & del Carmen Tariana, n.d. p.220).

The general causes of workplace stress according to the effort-reward imbalance model are attributed to increased workload with low reward. It has been identified that this model “over -commitment increases the risk of adverse health outcomes and that there is an interaction effect of cover commitment and effort-reward imbalance (ERI)” (Stanhope, J., 2017 paragraph 1). Both models share some similarities since they both serve with acknowledging workplace stress.

References:

Hitt, Miller, Colella, & del Carmen Triana, n.d.). Fifth Edition. Retrieved from https://platform.virdocs.com/r/s/0/doc/385608/sp/1…

Stanhope, J., (2017) Effort-Reward Imbalance Questionnaire. Retrieved from https://academic.oup.com/occmed/article/67/4/314/3…