can i please get an answer asap it's due in about 2 hours? i mostly need part 2

CASE STUDY ON INVENTORY MANAGEMENT

Company Introduction: Pacific Semiconductors, Inc. (PACSEM)

Pacific Semiconductors, Inc. (PACSEM) came into being in February 1988, being the newest addition to the booming Philippine electronic industry. The company is primarily involved in contractual assembly work for the semiconductor industry. It is housed in a 70,000 square foot assembly house in Taguig, Metro Manila.

The facility boasts of the latest in equipment technology and facility to satisfy the myriad demand of the industry. PACSEM manufactures microchips such as PDIPs, CERDIPs, Flat Packs, and Metal Cans. processed through a climate controlled assembly house located in its plant in Taguig. PACSEM boasts of being a full SPC assembly house which makes quality its first priority.

Case Introduction:

One of the most critical phase in the production of microchips is the wire bonding stage. Due to its high conductivity, gold wires are used for this purpose. Gold wires (purity of 99.99%) are sold in spools as shown below. The spools are attached to the wire bonders which uses the gold wire to connect the circuits inside a microchip.

There are few suppliers of gold wire and they are all overseas.

PART I

At the start of its operation, PACSEM estimated that the annual demand for gold wire is about 30000 spools, with a holding cost of $ 18 per unit per year and a set-up and order cost of $ 112.50 per order. It takes 4 days to receive an order from the supplier and the company operates 300 days per year on a 24/7 shifting schedule.

1. What is the EOQ?
2. What is the average inventory?
3. What is the annual inventory holding cost?
4. How many orders should be made per year?
5. What is the annual order cost?
6. What is the total cost of managing the inventory?
7. What is the time between orders?
8. What is the ROP?

PART II

There are two main suppliers of gold wire, Tanaka Bonding Wires and Newlong Siemitsu. PACSEM has invited both companies to submit their bids with their proposed quantity discounts. The annual demand, holding and set-up

costs remains the same as indicated above. The suppliers price lists are shown below:

TANAKA	NEWLONG
Quantity Unit Price	Quantity Unit Price
Less than 299 $ 50 300 999 49 1000 and above 48	1 199 $51 200- 799 50 800 and above 48

1. 1. What is the EOQ?
2. 2. Which supplier should be used and why? Please show comparative computations for your choice.
3. 3. What is the optimal order quantity?
4. 4. What is the total annual cost of ordering, purchasing, and holding the spools?