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Y our firm sells to wholesalers nationwide. Your bank has just completed a lockbox study of your cash collection system. After a thorough study of your remittance information, they categorized your customers into four groups as shown below. Your annual opportunity cost of funds is 5%.

Customer Group	# of Remittances	Average Face Value	Bank A Float	Bank B Float	Bank C Float
1	2000	50000	5	3	1
2	4000	30000	1	6	4
3	1000	18000	3	7	5
4	200	20000	7	1	3
Variable Cost			0.30	0.60	0.80
Fixed Cost			300	400	150

Use the complete enumeration model to determine the optimal number of lockbox sites and the customer allocation among the chosen sites.

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M93050034

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