Retail chain for consumer electronics

Assignment Help Financial Management

Reference no: EM131318835

Magazine Luiza is a Brazilian retail chain for consumer electronics. The company currently has 100 stores distributed across Brazil. It also operates an online channel. It is considering introduction of a new printer and must decide whether to offer it at retail stores or the online channel. Weekly demand for the printer at each store has been forecast to be normally distributed with a mean of 100 and a standard deviation of 80. The company has also forecast that the demand at the online channel would be the sum of demand across all 100 stores. The supplier will take 4 weeks to fulfill a replenishment order, whether placed separately by each store or by the online DC. Magazine Luiza is targeting a CSL of 95 percent and monitors its inventory continuously.

How much safety inventory will Magazine Luiza carry if the printer is carried at all 100 stores?

How much safety inventory will magazine Luiza carry if the printer is carried online and demand across stores is independent?

How much safety inventory will Magazine Luisa carry if the printer is carried online and the demand across stores has a correlation of ρ = 0.3?

Reference no: EM131318835

Questions Cloud

Describe the most valuable asset an organization : Explain what motivation is and the benefit for organizations to have motivated employees. In addition, identify and describe the most valuable asset an organization has and how they keep them motivated.

Investors attempted to follow active portfolio strategy : What would happen to market efficiency if all investors attempted to follow an active portfolio (engaged in security analysis) strategy? Explain. Consider a 4.75% coupon, 10-year U.S. Treasury note that matures on August 15, 2017. Calculate the accru..

Compute the cost of capital for the three alternatives : The board of directors of Hamilton health plan is considering the following alternative financial structures: A. 30% debt 70% equity B. 40% debt 60% equity C. 50% debt 50% equity. Compute the cost of capital for the three alternatives. Which structur..

Quarter for feasibility study regarding the demand : Anchor Ltd paid $15,000 lauarter for a feasibility study regarding the demand for motor - boat replacement parts which would require the purchase of a new metal - shaping machine. Today, they wish to conduct an analysis of the proposed project. This ..

Retail chain for consumer electronics : Magazine Luiza is a Brazilian retail chain for consumer electronics. The company currently has 100 stores distributed across Brazil. It also operates an online channel. It is considering introduction of a new printer and must decide whether to offer ..

What will happen to the price of the? bond : How much will the coupon payments be of a 20?-year $1,000 bond with a 9.5?% coupon rate and quarterly? payments? A $5,000 bond with a coupon rate of 5.5?% paid semiannually has ten years to maturity and a yield to maturity of 6.6?%. If interest rates..

Bond outstanding with a face value : The Sisyphean Company has a bond outstanding with a face value of $5,000 that reaches maturity in 15 years. The bond certificate indicates that the stated coupon rate for this bond is 8.7?% and that the coupon payments are to be made semiannually. As..

Issuing bank has reason to refuse payment : On July 10, a foreign trade company has signed a sales contract (CIF) worth 150,000 USD with foreign investors, and the payment shall be made through irrevocable letter of credit. The contract provided for our goods should be shipped out in August. ..

Basic functions and clients of a classic investment bank : In the spirit of financial intermediaries, compare and contrast the basic functions and clients of a classic investment bank (e.g., Goldman Sachs) with a classic commercial bank (e.g., Bank of Bethesda). Again as financial intermediaries, how do comm..

User Account

All Pages