Benefits of employing such system in economy

Assignment Help Financial Management
Reference no: EM131552521

Because of a new product line, your company's sales over the last few months have increased significantly. As a result, the amount of cash held by the company has increased to levels never experienced before. An evaluation by the company's financial staff concludes that the company is holding too much cash. This situation is reported to the stockholders. How do you think the stockholders would react to this information? What options do you have to deal with the concerns of the stockholders without creating any additional risk?

Just–in–time (JIT) inventory systems were first developed by the Japanese and quickly adopted around the globe by many large firms. One of the first to adopt the system in the United States was the automobile industry.

In your opinion, is the JIT system a system that can and should be adopted by small, individually owned firms? Why or why not?

Would the smaller firms have any advantage in terms of their ability to use such a system? Why or why not?

What would be the benefits of employing such a system in the economy?

Reference no: EM131552521

Questions Cloud

Find the velocity of the electron : Example: If electrons accelerate from rest through 200V, they acquire a kinetic energy of 200eV. Assume that a beam of these electrons enters a region.
Explain how financial analysis affects management decisions : Explain how financial analysis affects management decisions. Analyze the professional, ethical, and legal standards of healthcare administrative practice.
What is the company as a wholes market value d-e ratio : What is the company as a whole's market value D/E ratio if it funds the expansion using:
Average investment in accounts receivable : What is the average investment in accounts receivable as shown on the balance sheet?
Benefits of employing such system in economy : Because of new product line, your company's sales over last few months have increased significantly. What would be benefits of employing such system in economy
What are the momentum and kinetic energy of an electron : What are the momentum and kinetic energy of an electron that bends through a radius of 5cm in a magnetic field of 2mT?
What is direction of the electric force on a positive charge : In Fig., the uniform magnetic field points out of the page. What is the direction of the magnetic force on a positive charge traveling through the filter.
Assess managing diversity in the workplace : Analyze the role of innovation in executing change strategies.Assess managing diversity in the workplace.
What is your profit or loss on contract : what is your profit or loss on the contract?

Reviews

Write a Review

Financial Management Questions & Answers

  Equal annual end-of-the-year cash flows

You have accumulated $1,269,650 for your retirement. How much money can you withdraw for the next 17 years in equal annual end-of-the-year cash flows if you invest the money at a rate of 8.17 percent per year compounded annually.

  Why does the binomial model converge to a specific value

Why does the binomial model converge to a specific value of the option as the number or time periods increase? To what value does the option converge? When "n" approaches infinity, to what famous model does the binomial model converge?

  Describe an optimal inventory policy

Economic Order Quantity. The Trektronics store begins each month with 740 phasers in stock. This stock is depleted each month and reordered. If the carrying cost per phaser is $26 per year and the fixed order cost is $340, what is the total carrying ..

  Although starbucks has great corporate social responsibility

Although Starbucks has a great corporate social responsibility (CSR) policy, what challenges do you believe they have encountered globally?

  What is the value today at a discount rate

What is the value today of $4,600 per year, at a discount rate of 10 percent, if the first payment is received 6 years from today and the last payment is received 20 years from today?

  Treasury and corporate bonds with different ratings

Assume that interest rates on 20-year Treasury and corporate bonds with different ratings, all of which are noncallable, are as follows: T-bond = 7.72% A = 9.64% AAA = 8.72% BBB = 10.18% A. Real risk-free rate differences B. Tax effects. C. Maturity ..

  Investment contract that pays equal

Peter Lynchpin wants to sell you an investment contract that pays equal $13,300 amounts at the end of each of the next 23 years. If you require an effective annual return of 8 percent on this investment, how much will you pay for the contract today?

  Based on the pecking-order theory of capital structure

Based on the pecking-order theory of capital structure, what are the assumptions for Miller and Modigliani that have been relaxed?

  Role of parties in plurality-proportional election systems

How do political parties shape election outcomes and the formation of governments? Discuss the similarities and differences in the role of political parties in presidential and parliamentary governments, and discuss the role of parties in plurality a..

  Compute the mean drying time

The drying rate in an industrial process is dependent on many factors and varies according to the following distribution. What is the average drying time for the 12 processes you simulated? Compute the mean drying time

  Commerce periodically sponsors public service seminars

The Westchester Chamber of Commerce periodically sponsors public service seminars and programs.

  Do you think that the prevailing one-year forward rate

Do you think that the prevailing one-year forward rate of Freeland's currency (the fre) would overestimate, underestimate, or be a reasonably accurate forecast of the spot rate one year from now?

Free Assignment Quote

Assured A++ Grade

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!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd