What is the average level of inventory

Assignment Help Financial Management

Reference no: EM13767799

Joanie Fabrics makes custom purses and uses 800 yards of fabric per year. The fabric used for the purses has a fixed cost of $50 per order, a carrying cost of $2 per yard per year. When they place an order, it takes 5 days before the shipment is received. Joanie likes to keep 10 days usage in inventory as her safety stock because her customers would be very upset if she runs out of their favorite purses.

What is the EOQ?

What is the average level of inventory? (365 day year)

What is the reorder point?

Reference no: EM13767799

Questions Cloud

Initial investment strategy : Financial Analysts, Inc., is an investment firm that manages stock portfolios for a number of clients. A new client has requested that the firm handle an $800,000 portfolio. As an initial investment strategy, the client would like to restrict the por..

Municipal solid waste and new legislation and technology : Municipal solid waste (MSW) is all of the garbage, refuse, trash, or junk that gets thrown away from homes and small businesses. All of this MSW is collected and taken away. Have you ever wondered where it goes? In the 1950s and 60s, it went to op..

Breakeven point for number of luxury boxes in new stadium : Preliminary plans are underway for construction of a new stadium for a major league baseball team. City officials question the number and profitability of the luxury corporate boxes planned for the upper deck of the stadium. What is the breakeven poi..

Decrease the after-tax of debt for a firm : All else constant, which of the following will decrease the after-tax of debt for a firm?

What is the average level of inventory : Joanie Fabrics makes custom purses and uses 800 yards of fabric per year. The fabric used for the purses has a fixed cost of $50 per order, a carrying cost of $2 per yard per year. When they place an order, it takes 5 days before the shipment is rece..

Identify the stakeholders possible interest in statistics : Once you have gathered the statistics, identify the stakeholders, possible interest in statistics and at least three key decisions they must make from the data. Defend your position with a rational explanation

What is their operating cycle and cash conversion cycle : Camp Manufacturing currently has average inventories of 90 days and accounts receivable are typically collected in 60 days. Camp’s payables are paid 30 days after the invoice is received. The company has sales of $30,000,000. Using a 365 day year, Wh..

Write a paper on staffing plan for a growing business : Write a paper on Staffing Plan for a Growing Business. You are a former certified education administrator who departed your former position to become the owner of a small business.

Value of a firm is independent of its capital structure : Which of the following argued that the value of a firm is independent of its capital structure?

User Account

All Pages