(1) Asus manufactures and sells laptops. Laptops require processors that are supplied by a third party....

 

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(1) Asus manufactures and sells laptops. Laptops require processors that are supplied by a third party. The rate of production is constant and it is estimated that Asus will require 36000 processors annually. Assume that the ordering costs are $280 per order and annual holding costs are $29 +16% of the value of the inventory. Asus has 300 working days per year. The lead-time for processors is 9 days. The standard deviation for daily demand is 2. Answer the following inventory policy questions: Asus's supplier is offering the following quantity discounts. Quantity 1-1999 Price $185 2000-3799 $180 3800-4999 $177 5000 and above $176 (i) Based on the information given below what quantity should Asus choose when making orders? (ii) What is the reorder point and additional cost if Asus wants 91%, 97.5% and 99% service levels? (1) Asus manufactures and sells laptops. Laptops require processors that are supplied by a third party. The rate of production is constant and it is estimated that Asus will require 36000 processors annually. Assume that the ordering costs are $280 per order and annual holding costs are $29 +16% of the value of the inventory. Asus has 300 working days per year. The lead-time for processors is 9 days. The standard deviation for daily demand is 2. Answer the following inventory policy questions: Asus's supplier is offering the following quantity discounts. Quantity 1-1999 Price $185 2000-3799 $180 3800-4999 $177 5000 and above $176 (i) Based on the information given below what quantity should Asus choose when making orders? (ii) What is the reorder point and additional cost if Asus wants 91%, 97.5% and 99% service levels?

Answer rating: 100% (QA)

Inventory Policy for Asus Laptops Given Information Demand 36000 processors annually constant rate O... View the full answer