I am a US chocolate importer who is importing Belgian chocolate from Belgium worth € 100,000 and the amount is due in 360 days. I want to hedge my Belgian euro payables using a money market hedge and obtain the following quotes from my banker: Spot rate is: $1.1000 – $ 1.1100 / € The Belgium interest rates are: 3.0 % - 3.4 % annually and US interest rates are: 2.1 % – 2.5 % annually. Using a money market hedge and bid-ask spreads, what are my $ payables in 360 days?

Haley photocopying purchases a paper from an out-of-state vendor. average weekly demand for paper is 150 cartons per week for which haley pays $15 per carton. in bound shipments from the vendor average 1000 cartoons with an average lead time of 3 weeks. haley operates 52 weeks per year; it carries a 4-week supply of inventory as safety stock and no anticipation inventory. the vendor has recently announced that they will be building a faculty near haley photocopying that will reduce lead time to one week. further, they will be able to reduce shipments to 200 cartons. haley believes that they will be able to reduce safety stock to a 1-week supply. what impact will these changes make to haley’s average inventory level and its average aggregated inventory value?