1. If you have a consumption of 450.000 gallons of paint in a year, and you work 250 days in a year, determine the reorder point if your company wishes to have 2 days of safety stock and your supplier takes 15 days to get the products to your warehouse.

45.000 gallons

30.600 gallons

25.060 gallons

20.650 gallons

2.

XYZ has forecast its total funds requirements for the coming year as shown in the following table. Divide the firm's monthly funds requirement into (1) a permanent component and (2) a seasonal component, and find the monthly average for each of these components. Describe the amount of long-term and short-term financing used to meet the total funds requirement under an aggressive funding strategy. Assume that, under the aggressive strategy, long term funds finance permanent needs and short-term funds are used to finance seasonal needs. Assuming that short-term funds cost 13% annually and that the cost of long term funds is 18% annually, use the averages found in part a to calculate the total cost of each of the strategies described in part b. Consider surplus investment with 5% of return (determine the cost of the aggressive strategy using the following format: $1.111,11)

\begin{tabular}{|l|l|} \hline January & $45.000,00 \\ \hline February & $32.000,00 \\ \hline March & $20.000,00 \\ \hline April & $29.000,00 \\ \hline May & $65.000,00 \\ \hline June & $52.000,00 \\ \hline July & $40.000,00 \\ \hline August & $35.000,00 \\ \hline September & $39.000,00 \\ \hline October & $41.000,00 \\ \hline November & $36.000,00 \\ \hline December & $62.000,00 \end{tabular}