Question: 1. (40 points) A purchasing agent for a particular type of silicon wafer used in the production of semiconductors must decide among three sources. Source

1. (40 points) A purchasing agent for a
1. (40 points) A purchasing agent for a particular type of silicon wafer used in the production of semiconductors must decide among three sources. Source A will sell the silicon wafers for Sc (Let X; please select a price from the interval [3.5.5.5] such that there is only one decimal after the dot) per wafer, independently of the number of wafers ordered. Source B will sell the wafers for Sc (Let X-0.1) each but will not consider an order for fewer than 3,000 wafers, and Source C will sell the wafers for Se: (Let CX-0.2) cach but will not acceptan order for fewer than 4,000 wafers. (Example: -54.3. c. 54.2C-S4.1) The agent operates with an order cost of SA (Please select the order cost from the interval 100, 500) such that it is a multiple of 50) and an annual requirement of 20,000 wafers. Holding costs are computed on the basis of an i% annual interest rate (Please select an integer interest rate from the interval 10%, 30%]). Before solving the question, fill in the following table and copy it into your answer sheet. Value Answer the following questions: a) Which source should be used, and what is the size of the standing order? b) What is the optimal value for the holding and order costs for wafers when the optimal source is used? e) Assume that two years have passed, and the purchasing agent mentioned in the problem must recompute the optimal number of wafers to purchase and from which source to purchase them. Source B has decided to accept any size ofler, but sells the wafers for S(+0.15) each for orders of up to 3,000 wafers and S(01-0.15) each for the incremental amount ordered over 3,000 wafers. Source A still has the same price schedule, and Source C went out of business. Now which source should be used

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related General Management Questions!