Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Basic Finance Expert

Home Depot, Inc. is the world's largest home improvement retailer and one of the ten largest retailers overall in the United States. The firm operates more than 1,400 full-service, warehouse-style stores. Each store stocks between 40,000 and 50,000 different kinds of building materials, home improvement supplies, and lawn and garden products. Its customers are primarily do-it-yourselfers. Suppose that Home Depot is considering stocking a new deluxe toilet unit in its bathroom fixtures department. According to the case, Home Depot is trying to broaden its product line to appeal to home-improvement contractors. The initial conditions are: sales will average 1,000 units per year; it will cost $100 to keep a unit in inventory for a year; the fixed reordering cost is $80; and Home Depot pays a purchase price of $500 per unit.

Answers to the following problems:

1. Derive the EOQ's, and describe how it works. Illustrate your answer.

2. What is Home Depot's EOQ for the deluxe toilet units?

3. Using the EOQ, what is the average inventory, number of orders per year, and the total annual cost of maintaining the inventory of deluxe toilet units?

4. What would the EOQ be if expected sales were 2,000 units per year, ordering cost was $160, and the carry cost was $200?

5. describe the main differences between the EOQ and the Baumol's model.

Basic Finance, Finance

  • Category:- Basic Finance
  • Reference No.:- M940907

Have any Question? 


Related Questions in Basic Finance

Quantum technology had 652000 of retained earnings on

Quantum Technology had $652,000 of retained earnings on December 31, 20X2. The company paid common dividends of $33,300 in 20X2 and had retained earnings of $513,000 on December 31, 20X1. a. How much did Quantum Technolo ...

On a given day the number of square feet of office space

On a given day, the number of square feet of office space available for lease in a small city is a normally distributed random variable with a mean of 750,000 square feet and a standard deviation of 60,000 square feet. T ...

Assume that the risk-free rate is 45 percent and that the

Assume that the risk-free rate is 4.5 percent, and that the market risk premium is 6.7 percent. If a stock has a required rate of return of 15.2 percent, what is its beta?

List and describenbsptwonbspsectors you believe spends the

List and describe  two  sectors you believe spends the most money in health care? (Example sectors; hospital care, home health care, governmental insurance, pharmaceuticals, etc.)

Changes in money were more highly correlated with changes

Changes in money were more highly correlated with changes in nominal GDP than with changes in either real GDP or inflation. Does this finding support or refute monetarism? Explain.

For each of the following observed changes in wage rates

For each of the following observed changes in wage rates and migration flows from the low-wage South to the high-wage North, describe one shift in conditions that, by itself, could have caused the set of changes: a. A ri ...

Prompt discuss government issued t-bills and munis consider

Prompt: Discuss government issued T-bills and munis. Consider in your paper the following criteria: Would you invest in government issued T-bills? Why or why not?  Are there specific munis you would or would not invest i ...

Finance problemproblem 1 the owner of genuine subs inc

Finance problem Problem 1: The owner of Genuine Subs, Inc., hopes to expand the present operation by adding one new outlet. She has studied three locations. Each would have the same labor and materials costs (food, servi ...

Financial management assignmentdirections be sure to save

Financial Management ASSIGNMENT Directions: Be sure to save an electronic copy of your answer before submitting it to Ashworth College for grading. Unless otherwise stated, answer in complete sentences, and be sure to us ...

Careers in financefinance is an exciting field in need of

Careers in Finance Finance is an exciting field in need of intelligent, skilled people. The job opportunities range from corporate finance; financial planning; investment banking; insurance; and real estate from individu ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

A cola-dispensing machine is set to dispense 9 ounces of

A cola-dispensing machine is set to dispense 9 ounces of cola per cup, with a standard deviation of 1.0 ounce. The manuf

What is marketingbullwhat is marketing think back to your

What is Marketing? • "What is marketing"? Think back to your impressions before you started this class versus how you

Question -your client david smith runs a small it

QUESTION - Your client, David Smith runs a small IT consulting business specialising in computer software and techno

Inspection of a random sample of 22 aircraft showed that 15

Inspection of a random sample of 22 aircraft showed that 15 needed repairs to fix a wiring problem that might compromise

Effective hrmquestionhow can an effective hrm system help

Effective HRM Question How can an effective HRM system help facilitate the achievement of an organization's strate