1. DYM is a small strategy consulting company in Dallas, Texas. Each year DYM hires 40 new graduates for the entry level Associate rank. Each Associate on average spends 4 years before being considered for promotion. About only 50 % of the Associates, who come up for promotion move to the Manager rank. Each year, the company also hires 5 Managers from competitive consulting firms. A Manager (either hired or promoted within) on average stays in this rank for 6 years before being considered for promotion to Principal. At any point in time, how many Associates and Managers does the company employ? Show Calculation.

2. Consider the following financials information collected from the Income Statement and Balance Sheet of SofasR-Us, a furniture manufacturer in Greenbrier, NC. WIP = Work-in-Progress and FG= Finished Goods

Suppose the process flow times at the factory and the accounts receivables/sales organization remain unchanged, what would be the forecasted average inventory and accounts receivable for the following year? Show Calculation/ Explanation

Average Inventory =_________ Accounts Receivable = ________

3. A company places orders optimally based on the Economic Order Quantity model. Compared to last year, this year their demand has increased 8-fold while the cost of capital has doubled due to shortage of cash. The company wants to manage their ordering quantity optimally, and the operations manager states that they should quadruple their order quantity in comparison to last years order quantity. Is the operations manager right?

4. If a retailer orders 250 units every 5-weeks. What is the average inventory and the average time a unit spends in inventory? Show Calculation/ Explanation

Net Annual Sales Cost of Goods Sold Average Inventory (WIP and FG) Accounts Receivable Current Year (in Million $) 300 200 50 Pro-Forma (Next Year) 250 ( forecasted) 125 ( forecasted) ? 60 ? Net Annual Sales Cost of Goods Sold Average Inventory (WIP and FG) Accounts Receivable Current Year (in Million $) 300 200 50 Pro-Forma (Next Year) 250 ( forecasted) 125 ( forecasted) ? 60