Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
Uncertainty and Safety Stocks
Usually requirements may not be certain and thus the firm holds safety stock to safeguard stock out cases.The safety stock guards against delays in receiving orders. Nonetheless, carrying a safety stock has costs or it increases the average stock.
Demonstration
Consider illustration one and suppose that management desires to hold a minimum stock of 10 units or this stock is in hand at the starting of the year.
Required
a) Find out the re-order level
b) Find out the total relevant costs
Suggested solution
a) R = (DL/360) + S
Whereas: S is the safety stock
= ((2,000/360) * 7) + 10
= 49 units
b) The average inventory = ½Q + S
TC = (½Q + S)Cn + D/QCo
= [½(100) + 10]20 + (2,000/100) * 50
= 1,200 + 1,000
= Shs.2,200
Functions of Capital Markets Functions of Capital Markets are as: 1. Providing long term funds that are essential for investment decisions. 2. Provide advices to investo
Advantages of Investment in Shares 1. Income in form of dividends When you contain shares of a company then you become a part-owner of such company and hence you will be
Percentage of Sales Method - Financial Forecasting This method includes expressing various balance sheet items such are directly concerned to sales as a percentage of sales.
Access to Capital Markets and Ownership Structure Ownership Structure A dividend policy may be driven with Time Ownership Structure as like in small firms whereas manage
Tests of Term Structure of Interest Rates Theories Various tests have been conducted mainly in USA and they show that all the three (3) theories have some validity and therefo
I have a question regarding assignment help, once completed, will I receive the assignment via email?
how can I get?
Term Structure of Interest Rates The term structure of interest rate give details the relationship between the term to maturity and interest rates and the differences between
Debtors or Accounts Receiver Turnover Formula is as follow: Debtors/accounts receiver turnover = Annual credit sales/Average debtor The ratio signify the number of ti
Based on the example in Lesson 2, compute your quarterly interest for three years if you deposit $500 at 8 percent, compounded quarterly. Remember to divide the 8 percent by 4 to g
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!
whatsapp: +91-977-207-8620
Phone: +91-977-207-8620
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd