mgt432_sp16assign2_mgt432 - COMSATS INSTITUTE OF INFORMATION TECHNOLOGY VIRTUAL CAMPUS ASSIGNMENT NO.2 COURSE Financial Management and Policy CODE

mgt432_sp16assign2_mgt432 - COMSATS INSTITUTE OF...

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COMSATS INSTITUTE OF INFORMATION TECHNOLOGY COMSATS INSTITUTE OF INFORMATION TECHNOLOGY VIRTUAL CAMPUS ASSIGNMENT NO.2 ASSIGNMENT NO.2 COURSE: Financial Management and Policy CODE: MGT432 Q 1.The Hedge Corporation manufactures only one product: planks. The single raw material used in making planks is the dint. For each plank manufactured, 12 dints are required. Assume that the company manufactures 150,000 planks per year, that demand for planks is perfectly steady throughout the year, that it costs $200 each time dints are ordered, and that carrying costs are $8 per dint per year.(MARKS=9)a. Determine the economic order quantity of dints.b. What are total inventory costs for Hedge (total carrying costs plus total ordering costs)?c. How many times per year would inventory be ordered?Q 2.Explain in our own words how can firm speed-up cash collection and slow-down cash payments?(MARKS= 6) Instruction: Read and understand instructions carefully and then start attempting the assignment. In order to get good marks, following instructions should be followed while compiling your assignment
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  • Summer '19
  • Management, Times Roman, total inventory costs, COMSATS Institute of Information Technology, total carrying costs, total ordering costs

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