How often would the cycle turn over in a year

Assignment Help Operation Management
Reference no: EM132182470

Chapter 15

Pretty Lady Cosmetic Products has an average production process time of 40 days. Finished goods are kept on hand for an average of 15 days before they are sold. Accounts receivable are outstanding an average of 35 days, and the firm receives 40 days of credit on its purchases from suppliers.

a. Estimate the average length of the firm's short-term operating cycle. How often would the cycle turn over in a year?

b. Assume net sales of $1,200,000 and cost of goods sold of $900,000. Determine the average investment in accounts receivable, inventories, and accounts payable. What would be the net financing need considering only these three accounts?

Chapter 16

A supplier is offering your firm a cash discount of 2 percent if purchases are paid for within ten days; otherwise, the bill is due at the end of 60 days. Would you recommend borrowing from a bank at an 18 percent annual interest rate to take advantage of the cash discount offer? Explain your answer.

Reference no: EM132182470

Questions Cloud

Why coup violence is hard to prevent : Why coup violence is hard to prevent. Why they can be sudden and can one coup lead to other coup?
How do modern members of congress responsibilities : How do modern members of congress responsibilities differ from those in early congresses?
Implication of the free variables for the optimal choice : MP4702 - Advanced Materials and Materials Selection - UNIVERSITY OF CENTRAL LANCASHIRE - Explain the change of structure with martensitic transformation
Focus on the role of feminism in american politics-culture : Focus on the role of feminism in American politics/culture. What are the accomplishments and what are the obstacles?
How often would the cycle turn over in a year : Estimate the average length of the firm's short-term operating cycle. How often would the cycle turn over in a year?
Demand corrections of system problems in an accountable : In 1999, the Institute of Medicine report, To Err is Human, generated a brief flurry of concerns about avoidable hospital deaths.
Define marginal benefits are some of the economic principles : When analyzed through the lens of economics, public health operates like other sectors of the economy while still retaining significant differences.
Building block of citizenship : List 5 ways which one can influence their government. Which one is considered the building block of citizenship?
Describe the purpose of a strategic plan : Stevens District Hospital is a 162-bed acute care hospital that is qualified as a not-for-profit facility. The hospital is located in Jefferson City.

Reviews

Write a Review

Operation Management Questions & Answers

  Book review - the goal

Operations Management is about a book review. Title of the book is "Goal". This book has been written by Dr. Eliyahu Goldartt. The book has been appreciated by many as one of those books which offers an insight into the operations and strategic capac..

  Operational plan in hospitality enterprise

Operational plan pertaining to a hospitality enterprise is given in detail in the solution. The operational plan is an important plan or preparation which gives guidelines regarding the role and responsibilities of each and every operation at all lev..

  Managing operations and information

Recognise the importance of a strategic approach to the development and deployment of organisational information systems. Demonstrate an understanding of the importance of databases and their integration to the organisation's overall information mana..

  A make-or-buy analysis

An analysis of the holding costs, including the appropriate annual holding cost rate.

  Evolution and contributor of operations management

Briefly explain Evolution and contributor of Operations management.

  Functions and responsibilities of an operations manager

A number of drivers of change have transformed the roles, functions and responsibilities of an operations manager over recent years. These drivers have not only been based on technological innovations but also on the need for organisations to develop..

  Compute the optimal order quantity

Compute the Optimal Order quantity of DVD players. Determine the appropriate reorder point.

  Relationship to operations practice in the organisation

Evaluate problems in operations and identify approaches to overcoming them. Critically evaluate operating plans and identify areas for improvement. Justify, implement and evaluate changes to operations in line with modern approaches.

  A make or buy analysis

Develop a report for Figi Fabricating that will address the question of whether the company should continue to purchase the part from the supplier or begin to produce the part itself.

  Prepare a staffing plan

Prepare a staffing plan showing the change of your unit from medical/surgical staffing to oncology staffing.

  Leadership styles in different organizations

Ccompare the effectiveness of different leadership styles in different organizations

  Risk management tools and models

Be able to understand the concept of risk, roles and responsibilities for risk management and risk management tools and models.

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