TAILIEUCHUNG - Lecture Managerial finance - Chapter 28: Advanced issues in cash management and inventory control

Chapter 28 provides knowledge of advanced issues in cash management and inventory control. After studying this chapter you will be able to understand: Setting the target cash balance, EOQ model, Baumol model. | Chapter 28 Advanced Issues in Cash Management and Inventory Control Topics in Chapter Setting the target cash balance EOQ model Baumol Model Why is inventory management vital to the financial health of most firms? Insufficient inventories can lead to lost sales. Excess inventories means higher costs than necessary. Large inventories, but wrong items leads to both high costs and lost sales. Inventory management is more closely related to operations than to finance. Total Inventory Costs (TIC) TIC = Total carrying costs+ total ordering costs TIC = CP(Q/2) + F(S/Q). C = Annual carrying costs (% of inv.). P = Purchase price per unit. Q = Number of units per order. F = Fixed costs per order. S = Annual usage in units. EOQ = Q* = 2FS CP Derive the EOQ model from the total cost equation TIC Carrying Cost Ordering Cost 0 EOQ Units $ Average inventory = EOQ/2. Inventory Model Graph Assume the following data: P = $200. F = $1,000. S = 5,000. C = . Minimum order size = .

• Tài chính doanh nghiệp
• Managerial finance
• Lecture Managerial finance
• Financial statements
• Cash management
• Inventory control
• EOQ model
• Principles of managerial finance
• Lecture Principles of managerial finance
• Environment of managerial finance
• Financial services
• Career opportunities
• Financial analysis
• Cash flow
• Financial planning
• Time value of money
• Future calue
• Risk and Return Fundamentals
• Interest rates
• Bond valuation
• Stock valuation
• Equity capital
• International managerial finance
• Capital budgeting cash flow
• Incremental cash flows
• Capital budgeting techniques
• Net present value
• The cost of capital
• Cost of long term debt
• Marginal cost
• Breakeven analysis
• Capital structure
• Operating breakeven point
• Working capital
• Current asset management
• Spontaneous liabilities
• Accounts payable management
• Short term loans
• Financial options
• Corporate finance
• Option terminology
• Dividend policy
• The financial market environment
• Corporate governance
• Managerial behavior
• Stock options
• Capital budgeting cash flows
• Payout policy
• Current liabilities management
• Business organization
• Maximize wealth
• Financial securities
• Free cash flows
• Future value
• Present value
• Rates of return
• Balance sheet
• Personal taxes