Question: At Gilbert Electronics you are responsible for sourcing computer chips for your electronics. You currently purchase an annual 30,000 units of chips from supplier Beta.

At Gilbert Electronics you are responsible for sourcing computer chips for your electronics. You currently purchase an annual 30,000 units of chips from supplier Beta. The holding cost per unit per year is equal to $45 (the inventory holding cost factor is 15% and the unit cost is $300), and the cost of placing an order is $450.

What is the EOQ for these computer chips?

Your purchasing manager has been negotiating with your supplier some more and was able to get a multiproduct discount. the supplier could lower the per unit price to $200 if you order silicon wafers at the same times as the computer chips. You need 20,000 units pf the silicon wafers per year. Your supplier is offering you the following for the silicon wafers. - The cost per unit is $100. -The inventory holding cost factor would be 15%, and - your order placement cost is also $450. b. What would be your total costs if you ordered both products based on the computer chips optimal ordering cycle? c. What would be your total costs if you ordered both products based on the silicon waferss optimal ordering cycle? d. If you were to optimize your total costs, what would you use for Q for the computer chips? What is the total costs? And what would be the ordering cycle?

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