Finance Assignment | Custom Homework Help

Please submit your work in Word or PDF formats only. If you use Excel for your calculations, please submit it as a separate file or “cut and paste” your Excel work into the main submission file. You can use any sources you wish, except for other people. Please be sure to document any source you use.

Question #1

A firm expects to sell 50,000 units of its product annually. It estimates that it costs $2,000 to place an order and that each unit costs $8.00 annually to carry in inventory. It takes 4 days to receive an order once it is placed. Assume that the store is open every day of the year.

  1. a) How many units should the firm order at a time if it wants to minimize the sum of ordering and carrying costs?
  1. b) How many orders will it place in a year?
  1. c) How much will total ordering costs be for the year?
  1. d) What will its average inventory level (in units) be during the year?
  1. e) How much will total carrying costs be for the year?
  1. f) What is its reorder point?
  1. g) What would you expect to happen to the reorder point if uncertainty is taken into consideration?

Question #2

If a firm is considering implementing a JIT inventory system, list and describe the accounting issues that the firm should consider when making this decision.

Calculate your paper price
Pages (550 words)
Approximate price: -