The company inventory policy optimal

Assignment Help Financial Management

Reference no: EM131079274

Louise Manufacturing uses 2,800 switch assemblies per week and then reorders another 2,800. If the relevant carrying cost per switch assembly is $6.20 and the fixed order cost is $1,200, is the company's inventory policy optimal? Why or why not?

Reference no: EM131079274

Questions Cloud

Construction of new houses and the sale : Metro Credit Corporation lends to borrowers to finance the construction of new houses and the sale and purchase of existing homes. Despite a decline in the housing market and other "red flags," Metro's directors do not change the lending practices..

How and where the project products will be stored : Purpose A Configuration Management Strategy is used to identify how, and by whom, the project's products will be controlled and protected. It answers the questions: How and where the project's products will be stored and What storage and retrieval ..

Forming a judgment : "Feeling and intuition are better guides to behavior than is reasoning. We need immediate answers to many of our problems today, and feeling and intuition are almost instantaneous, while reasoning is painfully slow.

Foreseeable future this exponential function : Suppose the company you work for purchased a textile mill for $25million 4 years ago. It’s current market value is $20 million, and is estimated to decline exponentially for the foreseeable future following this exponential function: When should the ..

The company inventory policy optimal : Louise Manufacturing uses 2,800 switch assemblies per week and then reorders another 2,800. If the relevant carrying cost per switch assembly is $6.20 and the fixed order cost is $1,200, is the company's inventory policy optimal? Why or why not?

Compensation and benefit methods : What are the different types of equities involved on compensation and benefit methods?

Provide after-tax operating cash inflows : What is the NPV for the following project if its cost of capital is 15 percent and it’s initial after tax cost is $6,000,000 and it is expected to provide after-tax operating cash inflows of $1,800,000 in year 1, $1,900,000 in year 2, $1,700,000 in y..

Good study of the job description : Okay class following up James' post, why would it be of great importance to make a good study of the job description prior to an interview for said job?

About governmental entitlement programs : Given all of the press about governmental entitlement programs, and the possibility that Social Security will be unsustainable in 30 years, if you could make a change, what would it be (and why)?

User Account

All Pages