Question: DXB Computer Inc. purchases 6,000 RAM chips each year as components in their laptops. The unit cost of each RAM chip is $20, and the

DXB Computer Inc. purchases 6,000 RAM chips each year as components in their laptops. The unit cost of each RAM chip is $20, and the cost of carrying one RAM chip in inventory for a year is $3. Ordering cost is so per order. Assume that DXB Computer Inc operates on a 300-day working year (10 Marks) SL Paragraph BE Critically analyze and determine the following: (a) the optimal order quantity (1 Mark) (b) the expected number of orders placed each year (1 Mark) (c) the expected time between orders (1 Mark) e) if the delivery time from his suppliers generally take 8 working days, when should the re-order point be for the company? (2 Marks)

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!

DXB computer Inc. purchase 6,000 RAM chips each year as components in their laptops . The unit cost of each RAM chip is $20 , and the cost of carrying one RAM chip in inventory for a year is $3....

vill! DXB Computer in purchases 6,000 RAM chips each year as components in their laptops. The unit cost of each RAM chip is $20, and the cost of carrying one RAM chip in inventory for a year is 33....

Mr. Brian Krzanich was preparing for his new role as Intel's CEO that would start in May 2013.Impressed with your growing knowledge of strategic management, Mr. Krzanich had asked you to assist him...

Analysis of Diversification Strategy. First, evaluate Intel's strategy of diversifying into the software industry by explaining how incorporating both software products and hardware platforms (i.e.,...

45. Pungent Corporation manufactures and sells a spice rack. Shown below are the actual operating results for the first two years of operations: Year 1 Year 2 Units (spice racks) produced 40,000...

Read the case study above and answer the following questions: How did Nintendo successfully recreate the home video game business following the Atari-era boom and bust? How was Nintendo able to...

Hi Vjvgoe, Are you able to help me with this problem please? I would need to see it 7/16/17 since it's due that same week but I will put the deadline on 7/29/17. I have attached all of the...

Apple Computer had clearly established itself as the product leader in its industry by being the first company to market a complete personal computer in 1976. But by 1992, the industry had evolved in...

I'm working on Question #5 (parts a and b) and do not have a good understanding of Put Warrant or Convertible Bonds. I'm able to find some information on line as to what they are, however, it is...

. Consider a firm that buys units for Php 10 and sells them for Php 15. Thre are no other variable cost. Fixed costs are at Php 6,000. Use the break-even formula to determine the following: 1. write...

Refer to the data for The Terminator Inc. in Exercise 106. A management intern has suggested that the budgeted revenues and costs should be adjusted for the actual level of activity in April before...

Medicare Supplement policies offer a free look period for: A 8 0 deys B 4 5 days c ) 1 0 days D 3 0 days

Read the articles on journaling and review the template provided. Identify what approach, to journaling, in the articles you found useful and why. Post to the discussion forum that you have reviewed...