Determine the optimal level of inventory to maintain

Assignment Help Finance Basics

Reference no: EM131419907

1. Indicate by a (+), (-), or (0) whether each of the following events would probably cause average annual inventories (the sum of the inventories held at the end of each month of the year divided by 12) to rise, fall, or be affected in an indeterminate manner:

2. "Every firm should use the EOQ model to determine the optimal level of inventory to maintain." Discuss the accuracy of this statement with respect to the form of the EOQ model presented in this chapter.

Reference no: EM131419907

Questions Cloud

Explain strategic planning for mergers and acquisitions : Strategic planning for mergers and acquisitions. Deciding to acquire a company or compete with it. Deciding to supplement consulting staff by outsourcing. Using training to develop employee skill.

What level of confidence did the pollsters use : A newspaper reports that the governor s approval rating stands at 65%. The article adds that the poll is based on a random sample of 972 adults and has a margin of error of 2.5%. What level of confidence did the pollsters use?

After- tax cost of capital for debt financing : Great Seneca Inc. sells $100 million worth of 23 year to maturity 6.69% annual coupon bonds. The net proceeds (proceeds after flotation costs) are $980 for each $1000 bond. The firm's marginal tax rate is 40%. What is the after- tax cost of capita..

How many randomly selected adults must they test : Hearing this, some medical researchers decide to conduct a large-scale study, hoping to estimate the proportion to within 4% with 98% confidence. How many randomly selected adults must they test?

Determine the optimal level of inventory to maintain : "Every firm should use the EOQ model to determine the optimal level of inventory to maintain." Discuss the accuracy of this statement with respect to the form of the EOQ model presented in this chapter.

Economic order quantity model : Appliance for less is a local appliance store. It costs this store $19.13 per unit annually for storage, insurance etc. to hold microwave in their inventory. Sales this year are anticipated to be 562 units. each order costs $94. The company is uns..

How many should be sampled for a full investigation : To gauge the size of the problem, the agency first picks 60 cars and finds 9 with faulty emissions systems. How many should be sampled for a full investigation?

What do you see as key difference between using social media : What do you see as the key differences between using social media and traditional media for corporate marketing? What kinds of technologies might be useful when updating a marketing plan to include social media and web applications?

Compute the disbursement float : If Clearwater Glass has an opportunity cost equal to 10 percent, how much would it be willing to spend each year to reduce collection delay (float) by two days? (Hint: Assume any funds that are freed up will be invested at 10 percent annually.)

User Account

All Pages