Week 5 Operations Management Problem Exercises

Sigchi4life
Category:
Business & Finance
Price: $5 USD

Question description

S14-26.Fun ’n Games is a large discount toy store in Fashion City

Mall. The store typically has slow sales in the summer

months that increase dramatically and rise to a peak at Christmas.

However, during the summer and fall, the store must

build up its inventory to have enough stock for the Christmas

season. In order to purchase and build up its stock during the

months when its revenues are low, the store borrows money.

Following is the store’s projected revenue and liabilities

schedule for July through December (where revenues

are received and bills are paid at the first of each month

Month Revenues Liabilities 

July $20,000 $60,000

August 30,000 60,000

September 40,000 80,000

October 50,000 30,000

November 80,000 30,000

December 100,000 20,000


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