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Category: Management
Reorder Point Sterling Corporation has an EOQ of 5,000 units. The company uses an average of 500 units per day. An order to replenish the part requires a lead time of five days. Required: Calculate the reorder point, using Equation 20.3.
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Category: Management
What approach does JIT take to minimize total inventory costs?
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Category: Management
An investment of $2,000 produces a net cash flow of $800 in the first year, and $2,000 in the second year. What is the payback period? a. 1.60 years b. 1.25 years c. 0.50 years d. 1.10 years
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Category: Management
Assume there are two competing projects, X and Y. Project X has a NPV of $1,500 and an IRR of 16%. Project Y has a NPV of $1,000 and an IRR of 20%. Which of the following is true? a. Neither project should be chosen. b. It is not possible to choose between the two projects. c. Project Y should be chosen because it has a higher IRR. d. Project X sho...
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Category: Management
Describe the product life cycle. How do unit-level costs behave in relation to the product life cycle? Batch-level costs? Product-level costs? Facility-level costs?
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