Question: 5. For Problem 4, suppose that Noname has 23,000 DRAM chips in inventory. It anticipates receiving a lot of 3,000 chips in week 3 from

5. For Problem 4, suppose that Noname has 23,000 DRAM chips in inventory. It anticipates receiving a lot of 3,000 chips in week 3 from another firm that has gone out of

business. At the current time, Noname purchases the chips from two vendors, A and B. A sells the chips for less, but will not fill an order exceeding 10,000 chips per week.

a. If Noname has established a policy of inventorying as few chips as possible, what order should it be placing with vendors A and B over the next six weeks?

b. Noname has found that not all the DRAM chips purchased function properly. From past experience it estimates an 8 percent failure rate for the chips pur-1 chased from vendor A and a 4 percent failure rate for the chips purchased from vendor B. What modification in the order schedule would you recommend to compensate for this problem?

ICU2 computer lend item) Motherboard (1) Lead time 3 weeks Disk drives (2) Lead time Add-in boards (3) Lead time DRAM chips (90) 2 weeks I weak Lead time I week