Message-ID: <941066.1075843092188.JavaMail.evans@thyme> Date: Thu, 4 May 2000 10:44:00 -0700 (PDT) From: owner-e204-1@haas.berkeley.edu To: e204-1@haas.berkeley.edu, e204-2@haas.berkeley.edu Subject: Inventory Class Notes Handout/Clarification on TA#2 Cc: joy@haas.berkeley.edu Mime-Version: 1.0 Content-Type: text/plain; charset=ANSI_X3.4-1968 Content-Transfer-Encoding: 7bit Bcc: joy@haas.berkeley.edu X-From: owner-e204-1@Haas.Berkeley.EDU X-To: e204-1@haas.berkeley.edu, e204-2@haas.berkeley.edu X-cc: joy@haas.berkeley.edu X-bcc: X-Folder: \Jeff_Dasovich_Dec2000\Notes Folders\Mba--quant X-Origin: DASOVICH-J X-FileName: jdasovic.nsf Dear E204-1, E204-2 Students, I have attached a handout on Inventory Management that parallels my lectures and the readings (but does not cover some models, like MRP -- Materials Requirement Planning, which is in the reading handout). This was requested by class rep Erik Magner. I have tried to include all the square roots as ( ... )1/2 but compare to the formulae in the?readings for accuracy/equivalence.?Regarding Team Assignment #2, "End of Month Cash Balances" refer?to the end of the month AFTER any loan that is needed. The 0.5% interest?is only earned on the end-of-month cash flow BEFORE the loan, however?(0.5% of any pre-loan positive balance is paid to McGan, and McGan pays?the bank 0.5% of any pre-loan negative cash balance -- in addition to the?1% interest charge on any loan needed). McGan's end-of-month?cash balance should be at least $250,000 (after any loan) in any month.?These comments refer to the last two bullet-points of Problem 2, p. 3.?--Tom McCullough? - E204_INV_hndout.doc??=======================================================================?Tom McCullough?Senior Lecturer?Haas School of Business?University of California at Berkeley?==========================================================================