If a Has a Gross Requirement to Build 200 Units

question 15

Multiple Choice

If A has a gross requirement to build 200 units and an on-hand inventory for A of 60, determine the net requirement for D if its current on-hand inventory balance for D is 200 (all other components have no (zero) current inventory) .

• A)Less than or equal to 1,000 units
• B)Greater than 1,000 but less than or equal to 1,500 units
• C)Greater than 1,500 but less than or equal to 2,000 units
• D)Greater than 2,000 but less than or equal to 2,500 units

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Definitions:

Miller-Orr Model

A financial model used to manage the cash inventory of a firm by setting upper and lower limits on cash balances, determining when to transfer funds.

Cost of Borrowing

The cost of borrowing is the total expense that a company or individual incurs in taking out a loan, including interest payments, fees, and any other charges.

Cash Flows

The net amount of cash being transferred into and out of a business, used as an indicator of financial health.

Miller-Orr Model

The Miller-Orr Model is a financial model used to manage cash balances by setting upper and lower limits on cash reserves, suggesting when to transfer funds to minimize costs.