question archive 1) Suppose MS Tech has the following estimates under its inventory management: Total annual inventory demand = 840,444 units Inventory ordering cost = RM50 per order Inventory carrying cost = RM0
Subject:FinancePrice:4.87 Bought7
1) Suppose MS Tech has the following estimates under its inventory management:
Total annual inventory demand = 840,444 units
Inventory ordering cost = RM50 per order
Inventory carrying cost = RM0.03 per unit
Average daily inventory demand = 2,302.59 units
Inventory delivery lead time = 3 days
Inventory lead time demand = 6,907.77 units
Inventory safety stock level = 34,539 units
What are the Economic Order Quantity (EOQ) and the Reorder Point for MS Tech? Briefly explain your findings.
2) Suppose the cost of debt for MS Tech in both 2019 and 2020 is 10.75% (effective rate),
and its corporate tax rate is 24%. Calculate the after-tax cost of debt for MS Tech. Briefly
explain what the number means.
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