Question: Bell Computers purchases integrated chips at $ 3 5 0 per chip. The holding cost is $ 3 7 per unit per year, the ordering
Bell Computers purchases integrated chips at
$
per chip. The holding cost is
$
per unit per year, the ordering cost is
$
per order, and sales are steady at
per month. The company's supplier, Rich Blue Chip Manufacturing, Inc., decides to offer price concessions in order to attract larger orders. The price structure is shown below. costs are $ per item per year, and ordering costs are $ per order.
a What is the economic production quantity? units round your response to two decimal places
b How many production runs per year will be made? qquad production runs round your response to two decimal places
c What will be the maximum inventory level? units round your response to two decimal places
d What percentage of time will the facility be producing components? qquad enter your response as a percentage rounded to two decimal places
Step by Step Solution
There are 3 Steps involved in it
1 Expert Approved Answer
Step: 1 Unlock
Question Has Been Solved by an Expert!
Get step-by-step solutions from verified subject matter experts
Step: 2 Unlock
Step: 3 Unlock
