Figure 1. Customer Survey Data
Based on the recent survey of all of its 200 customers, Techsoft Sales team has prepared the following report:
Currently Techsoft has an exceptionally high customer service level of 98%, much higher than any of its competitors. Customers showed positive response towards a possible lower but acceptable service level. Results of the survey showed 45 of the customers would be serviced at90% (classified hereon asCategory B) and the rest would have to be serviced at95%(Category A).
Question	Yes	No
What is your order lead time?	Category A (95%)	Category B (90%)	Category A	Category B
Customers willing to submit/freeze orders 6 weeks before receipt	153	44	2	1	200
Customers willing to submit/freeze orders 4 weeks before receipt	152	42	3	3	200
Customers willing to submit/freeze your orders 2 weeks before you receive them?	50	42	105	3	200

Figure 2. First Quarter Sales Projections for 2019 Below is the historical lst quarter sales for the past year. The future demand is expected to follow the same pattern Week Actual Graphics Cards Sales Week 1 \" Week 2 Week 3 140 157 307 Week 4 Week 5 Week 6 Week 7 Week 3 135 168 354 Week 9 139 \" Week 10 170 Week 11 135 349 Week 12 313 186 127 Figure 5. Current Shipping and Transportation Costs for Vision Graphics Card There is currently no import tarriff on Graphics Cards into the US from Singapore Direction Asian Plant to Warehouse Asian Warehouse to North America - Air Expedited* Asian Warehouse to North America - Air Cargo Asian Warehouse to North America - Sea Domestic Route - Express Domestic Route - Priority Domestic Route - Ground Cost 0.01 6.5 3.5 2.19 6.75 4.25 2.3 Unit Time Per Card 4 hours Per Card 2 Days Per Card 5 days Per Card 2 weeks Per Card 2 Days Per Card 4 Days Per Card 7 Days * Due to last minute finalization of order quantities most cards are currently sent via Air Expedited to North America Figure 7. Warehousing costs including operations and handling Warehouse Facility Area (5qu Monthly Operating Costs (Per SqM] Handling Costs (5/ per Item] % of Warehouse Dedicated to Vision Card Figure 8. Production Shifts and Cost Production Facility Singapore, SG Production per shift 50 Shifts/ Week 20 Set up cost per unit (S) 0.03 \f