Practical Management Science
Practical Management Science
5th Edition
ISBN: 9781305250901
Author: Wayne L. Winston, S. Christian Albright
Publisher: Cengage Learning
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Chapter 12, Problem 29P

a)

Summary Introduction

To identify: The number of times a person must visit the bank.

Inventory and supply chain models:

The functions of inventory and supply chain are one of the most important business decision areas for an organization. The first important aspect of these concepts is to have adequate inventory on hand. The second important aspect is to carry a little amount of inventory as possible.

b)

Summary Introduction

To identify: The amount of money the person must withdraw each time going to the bank.

c)

Summary Introduction

To identify: If a person will go to the bank more or less often if the need for cash increases.

d)

Summary Introduction

To identify: If a person will go to the bank more or less often if the interest rate increases.

e)

Summary Introduction

To identify: If a person will go to the bank more or less often if the number of tellers increases.

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On-Balance Sheet Items (Assets) (in millions) Cash $   10,000 Government securities      30,000 Interbank deposits        5,000 Home loans to personal finance customers      20,000 Loans to corporate customers      75,000 Total Balance Sheet Assets     $140,000     Off-Balance Sheet Items   Standby letters of credit backing corporate borrowings $  10,000 Long term unused loan commitments made to private corporations     20,000 Total Off-Balance Sheet Items    $30,000     Bank Capital   Common stock (par value) $   1,000 Surplus      1,500 Retained earnings      1,500 Subordinated debentures      2,000 Minority interest in subsidiaries      1,000 Allowance for loan and lease losses (reserves)      1,000 Non cumulative perpetual preferred stock      1,000 Intermediate term preferred stock      4,000 Equity commitment notes      2,000     Basel…
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