1. A grocery store uses 600 boxes of plastic bags per month. The boxes cost $25 each, placing an order for plastic bags cost $20, and holding costs are $5 per box per month. Using the basic EEQ model, what are: a) the economic order quantity?
b) the average inventory level?
c) the total monthly holding cost?
d) the total monthly ordering cost?

2. A manufacturer produces umbrellas, which it sells for $10 each. The production rate is 400 per day. The monthly demand for umbrellas is 1800(and so usage per day is 60). Setup cost is $50 and holding cost is $1 per umbrella per month. What are:
a) the economic production quantity?
b) the average inventory level?
c) the total monthly holding costs?
d) the total monthly setup costs?

3. A hospital orders latex gloves in lots of 100 boxes. Inventory is depleted at a constant rate and orders are placed so that the new gloves arrive when the inventory of gloves reaches 30 boxes. What is the average inventory level over time?

You have just been hired as a financial analyst for barrington industries. unfortunately, company headquarters (where all of the firm's records are kept) has been destroyed by fire. so, your first job will be to recreate the firm's cash flow statement for the year just ended. the firm had $100,000 in the bank at the end of the prior year, and its working capital accounts except cash remained constant during the year. it earned $5 million in net income during the year but paid $800,000 in dividends to common shareholders. throughout the year, the firm purchased $5.5 million of machinery that was needed for a new project. you have just spoken to the firm's accountants and learned that annual depreciation expense for the year is $450,000; however, the purchase price for the machinery represents additions to property, plant, and equipment before depreciation. finally, you have determined that the only financing done by the firm was to issue long-term debt of $1 million at a 6% interest rate. what was the firm's end- of-year cash balance? recreate the firm's cash flow statement to arrive at your answer

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You are frustrated to find that the only way to contact the customer service department is to make a phone call. the number listed would result in long distance charges to your phone bill. which issue should be addressed by the company to keep its crm in line with your expectations?