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Study Questions:
2-
On the basis of Malik's forecast how much debt will Guna need to
arrange for the coming year? Will Guna be able to zero out the line of credit
this year? If not, what is the cause of Guna's ongoing need for debt?
Using
the
monthly
transportation manager.
forecast,
model
the
proposal
from
the
reliance on debt financing? How would you assess the costs and benefits of
this proposal?
5- Using the monthly forecast, model the proposal from the operations
manager. How helpful is level production in relieving Guna's reliance on debt
financing? How would you assess the costs and benefits of this policy?
6- What are your recommendations for Kumar?