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
the nominal fee interest rate in your account is 7% your semi-annually rate of interest APY will be?
Suppose the ABC Corporation is currently all-equity financed and would like to increase its value by issuing debt. The firm has annual earnings before interest and taxes of $7,0
given profit margin 7%, total asset turnover is 1.94, Return on equity is 23.7%, what is the debt equity ratio
If Metropolis Healthcare Systems have 1,150,000 in cash. How long will it take them to accumulate 2,000,000 in cash? Assume an interest rate of 5%..
Application of Discriminant Analysis Application of Discriminant Analysis to the Selection of Applicants, Discriminative analysis is a statistical model such can be used to ac
Define the term Public Issues - Floating New Issues Under this method, issuing company directly offers to general public/institutions a fixed number of shares
Question: a) A bank lends you $1750 at an initial nominal yearly interest rate of 7.5% compounded semi-annually. However, the interest rate will rise to 9.2% after the first
1. Suppose you would like to buy a house and you decided you can pay 3500 per month for 30 years. Your bank has approved you for a 30-year fixed rate mortgage loan at a quoted AP
What are the Types of orders (i) Spot Delivery: Spot delivery means delivery and payment on the same day as date of the contract or on the next day. (ii) Hand Delivery:
Explain about the functions of financial systems. Financial systems perform the necessary economic function of channelling funds through units who have stored surplus funds to
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