Jim's Hardware Is Adding a New Product Line to Its

question 78

Multiple Choice

Jim's Hardware is adding a new product line to its sales lineup.Initially,the firm will stock $41,000 of the new inventory,which will be purchased on 30 days' credit from a supplier.The firm will also invest $6,000 in accounts receivable and $4,000 in equipment.What amount should be included in the initial project costs for net working capital?

• A)-$41,000
• B)-$37,000
• C)-$10,000
• D)-$6,000
• E)-$2,000

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Definitions:

External Customer

A person or organization that receives a product or service from a business but is not part of the organization providing it.

Wagner-Whitin Algorithm

A dynamic programming approach to solve the economic lot sizing problem in inventory management, aiming to minimize costs.

MRP Lot-Sizing Technique

A method used in manufacturing to determine the quantity of materials required for production, focusing on minimizing costs while meeting production schedules.

Resource Requirements Profile

A document or plan that outlines the types and quantities of resources needed to complete a project or operation efficiently.