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At Lawn King (LK), the managers are attempting to make decisions concerning production and inventory control. Their policies must take into account the fact that they want to keep finished goods inventory low since they have little confidence in their forecasts for particular model sales.
Raw material for LK is the motors they purchase and install on the lawnmowers. One of the motors which LK buys is the 4HPX. Assume the cost of purchasing each motor is $40. Each time they place an order, their cost is $20 for processing the order. Assume also their cost of capital was 10%, and demand for these motors was 1000 for the year. Calculate the optimal order quantity for this motor. State the resulting policy, including reordering point, if lead-time is one day.
Assume a 250-day working year.
Discuss how interest rates affect individuals. Be sure to include at least one positive and one negative effect.
If you were to estimate the potential demand for a new online market you want to operate, what methods of estimation you may use?
Approximately how much output should the firm allocate to market 2? What is the approximate price that will be charged in market 1? What is the approximate price that will be charged in market 2?
Statistical Methods in Business & Economics – Final Exam BUS405 (2009A), best estimate of the correlation coefficient
Widgets R Us uses a variety of different items to produce their world-class widgets. For each item listed, place it in the appropriate bin according to whether it would generate an implicit or explicit cost for the firm.
Explain the basis of one of the Leading Economic Indicators. What local indicators of improved economic conditions might one see in his or her local community, town or city?
Why do you believe politicians are making these items priorities (and, why now in 2014)? In economics, we are looking for incentives. What incentives does a politician, looking out for their interest (invisible hand), have to promote these bills?
What is default risk, how is it measured, and how does it impact bond values?
Suppose you are studying the recent rise in shale energy. You know the inverse private demand function for shale energy is P = 100 - Qd. The private supply of shale energy is P = Qs. However, shale energy can potentially lead to pollution. The margin..
Each Non-Equity Modes of entry by a MNC are different, at least, in the amount of local value added, and export earnings they generate in a host country? Which of these modes of entry generate the highest local value added and why? Which of these mod..
There is some debate on whether Multinational Corporations (MNC's) increase risk when borrowing foreign currencies.
Consider the term efficiency. Is it the only goal of economic policymakers?
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