Which inventory policy should el ma adopt for the product

Assignment Help Financial Management
Reference no: EM131316413

El.Ma is an American distributor of electrical equipment. The warehouse in Columbus, Ohio, has 18 products to store and sell. Monthly sales and average monthly stock values are reported in Table.

Make an ABC classification (80-10-10) of the products by their monthly sales and by monthly average stock values, respectively. Which inventory policy should El.Ma adopt for the product named 'locking release 24V'?

1165_Tab 6.jpg

Reference no: EM131316413

Questions Cloud

Compute the standard deviation of monthly returns : The past five monthly returns for Kohl’s are 3.62 percent, 3.82 percent, −1.76 percent, 9.29 percent, and −2.64 percent. Compute the standard deviation of Kohls’ monthly returns.
Evaluate a bad experience you have had with an appointment : From the e-Activity, analyze the importance of production planning and scheduling within an organization. Evaluate a bad experience you have had with an appointment from both perspectives of the customer (you) and the organization due to inefficie..
Simple interest on its savings account balances : First City Bank pays 6 percent simple interest on its savings account balances, whereas Second City Bank pays 6 percent interest compounded annually. If you made a $69,000 deposit in each bank, how much more money would you earn from your Second City..
Earnings long-term debt plant and equipment : Which one of the following accounts is included in stockholders' equity? deferred taxes intangible assets accumulated retained earnings long-term debt plant and equipment.
Which inventory policy should el ma adopt for the product : Make an ABC classification (80-10-10) of the products by their monthly sales and by monthly average stock values, respectively. Which inventory policy should El.Ma adopt for the product named 'locking release 24V'?
Suppose stock just paid a dividend : Suppose a stock just paid a dividend of $3 and is expected to grow at a rate of 20% per year for the next two years before falling to a constant growth rate of 6%. If the required return on the stock is 14%, then what should the stock price be today?
Discuss ways of testing this hypothesis : Discuss ways of testing this hypothesis.Explain how the implementation of Six Sigma will result in the potential outcome.Buffalo Filter products were proven to hold toxic smokes, live cellular materials and viruses, this plume also caused respirator..
What are portfolio weights of each stock : If you own 500 shares of Alaska Air at $59.68, 550 shares of Best Buy at $68.12, and 300 shares of Ford Motor at $9.21, what are the portfolio weights of each stock? Portfolio weights Alaska Air Best Buy Ford Motor.
Evaluate different operations management principles : "Operations Management Applications" Please respond to the following: Evaluate different operations management principles and techniques that can make businesses more profitable today

Reviews

Write a Review

 

Financial Management Questions & Answers

  Coupon bonds making annual payments

Shinoda Corp. has 7 percent coupon bonds making annual payments with a YTM of 6.3 percent. The current yield on these bonds is 6.65 percent. How many years do these bonds have left until they mature?

  Depreciated on a straight-line basis

The Gilbert Instrument Corporation is considering replacing the wood steamer it currently uses to shape guitar sides. The steamer, purchased just 2 years ago, is being depreciated on a straight-line basis and has 6 years of remaining life. Gilbert's ..

  What is the companys expected growth rate

WACC and Cost of Common Equity Kahn Inc. has a target capital structure of 65% common equity and 35% debt to fund its $10 billion in operating assets. Furthermore, Kahn Inc. has a WACC of 16%, a before-tax cost of debt of 8%, and a tax rate of 40%. W..

  Most challenging economic periods

The year 2008 ushered in one of the most challenging economic periods in U.S. history. The effects of prolonged unemployment and reduced asset values for homes and personal wealth continue to affect people’s potential to realize their personal wealth..

  Describe some common ways to delay recognition of gains

Describe some common ways to delay recognition of gains from the disposal or sale of property. Give some examples.

  What is the effective annual rate of interest on this loan

Nighthawk Lighting Company borrows $300,000 for one year at 7.00% interest. The loan is a discounted loan and also requires a compensating balance of 5%. What is the effective annual rate of interest on this loan?

  What is the present value of income stream

At a constant interest rate of 15%, compounded annually, what is the present value of an income stream paying $50 next quarter and growing at 2% per quarter until the end of the third year? From that point on it grows at 1% per quarter indefinitely.

  What is the NPV of the worst case scenario

You are considering a new product launch. The project will cost $925,000, have a six-year life, and have no salvage value; depreciation is straight-line to zero. Sales are projected to be $1,800,000; variable cost per unit will be 60% of sales; and f..

  What is the approximate real rate of interest

Squall deposits $2,000 in the bank at a 12% annual interest rate. Assume the inflation rate is 4%. What is the approximate real rate of interest?

  What must the coupon rate be on the bonds

Essary Enterprises has bonds on the market making annual payments, with seven years to maturity, a par value of $1,000, and selling for $950. At this price, the bonds yield 6 percent. What must the coupon rate be on the bonds?

  Has nominal effective exchange rate value of euro decreased

The nominal bilateral rates change from 2.0 euros per Canadian dollar to 1.9 euros per Canadian dollar and from 48 yen per euro to 50 yen per euro. - Has nominal effective exchange-rate value of the euro decreased?

  Developing an asset financing plan

Christensen & Assoc. is developing an asset financing plan. Christensen has $1,000,000 in current assets, of which 15% are permanent, and $700,000 in fixed assets. The current long-term rate is 9%, and the current short-term rate is 6.5%. Christensen..

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd