2023 have been published. Additional information: - Macroeconomic Factors: The UK economy is experiencing mild inflationary pressures, affecting raw material costs and potentially impacting customer purchasing power. - Supply Chain Adjustments: Due to increased raw material costs, Quantex has renegotiated terms with some suppliers, leading to better credit terms. - Market Expansion: Quantex is expanding its market reach, introducing new product lines and entering new geographical markets. - Investments in Technology: The company has invested in automation and better inventory management systems to optimize operations. - Employee Training and Development: Quantex has increased its focus on employee training, aiming to improve efficiency and reduce operational errors. Quantex has forecast the following for year ended, 30 th of November 2024: Credit management - Sales are forecast to be 9.7m for the year ahead. - Receivables forecast to be 1,400,000. - The cost of financing receivables remains the same. Inventory management - Monthly demand for its inventory remains the same but the cost has increased to 3.15 per unit. The cost per order has increased to 1.54. The storage cost of 1 unit p.a. is 0.70. Cash management - All details remain the same, except the annual demand for cash is now 6,350,000. a) The benefit (or otherwise) of offering a discount of 0.25% for payment of debt within 14 days. Take up for this discount is predicted to be 25%. (20 marks) b) The optimum quantity of inventory to order if the suppliers now offer a discount of 0.40% per unit for orders of 3,500 units or more. Quantex's Cost of Capital is 19%. (20 marks) c) The lower limit, upper limit and return point (from the Miller-Orr model) for Quantex if the standard deviation of cash flows is 35,000 per day and briefly explain how this approach works. (10 marks) 2023 have been published. Additional information: - Macroeconomic Factors: The UK economy is experiencing mild inflationary pressures, affecting raw material costs and potentially impacting customer purchasing power. - Supply Chain Adjustments: Due to increased raw material costs, Quantex has renegotiated terms with some suppliers, leading to better credit terms. - Market Expansion: Quantex is expanding its market reach, introducing new product lines and entering new geographical markets. - Investments in Technology: The company has invested in automation and better inventory management systems to optimize operations. - Employee Training and Development: Quantex has increased its focus on employee training, aiming to improve efficiency and reduce operational errors. Quantex has forecast the following for year ended, 30 th of November 2024: Credit management - Sales are forecast to be 9.7m for the year ahead. - Receivables forecast to be 1,400,000. - The cost of financing receivables remains the same. Inventory management - Monthly demand for its inventory remains the same but the cost has increased to 3.15 per unit. The cost per order has increased to 1.54. The storage cost of 1 unit p.a. is 0.70. Cash management - All details remain the same, except the annual demand for cash is now 6,350,000. a) The benefit (or otherwise) of offering a discount of 0.25% for payment of debt within 14 days. Take up for this discount is predicted to be 25%. (20 marks) b) The optimum quantity of inventory to order if the suppliers now offer a discount of 0.40% per unit for orders of 3,500 units or more. Quantex's Cost of Capital is 19%. (20 marks) c) The lower limit, upper limit and return point (from the Miller-Orr model) for Quantex if the standard deviation of cash flows is 35,000 per day and briefly explain how this approach works. (10 marks)