I need help with the questions to Case $24$: Philadelphia Aircraft Equipment, Inc especially with the questions involving calculations. Here is the case and the questions:

Case $24$: Philadelphia Aircraft Equipment, Inc.

In January $2020,$ Emily Wang, the purchasing manager for Philadelphia Aircraft Equipment $($PAE$),$ Inc., received a call from their Tier $1$ power generator supplier in New Jersey informing her that effective June $30,2020$ they would discontinue production of the Series $10$ power generator. The Series $10$ generator is currently used as the auxiliary power source in $90\%$ of PAE$$s products. Emily was in shock! After recovering for the initial trauma, Emily began calling all possible supply sources. After talking with more than $10$ potential supply sources, she found Texas Generators, Inc., located in Mansfield, Texas. Texas Generators submitted the following price scheduling:

Units Unit Price

Q $<=100$ $ $480$

$100>$ Q$,=200$ $ $470$

Q $>200$ $ $455$

Texas Generators$$ prices are significantly higher than the New Jersey supplier. The traffic department informed Emily that the transportation cost per hundredweight is $$6$ for carloads of $50,000$ pounds. The less$-$than$-$carload rate is $$9$ per hundredweight. The replenishment cycle normally takes one week.

Background

Emily was concerned because PAE used $10$ Series $10$ generators each working day of the month. $($PAE operated on a $20-$day$-$per month schedule.$)$ Each generator weighs $500$ pounds. Generator orders are currently placed every Monday morning. For the past $10$ years, the Series $10$ generator had been produced in New Jersey. Ms$.$ Wang felt fortunate that the New Jersey producer was approximately $60$ miles from her facility. The New Jersey supplier offered just$-$in$-$time delivery service at no charge to PAE.

PAE implemented lean manufacturing in $2015.$ The kanban$-$controlled JIT production system was implemented based on the premise of minimizing work$-$in$-$process inventories $($waste$)$ by reducing lot sizes to increase production efficiency and product quality.

Emily$$s Decision

Ms$.$ Wang compiled cost and warehouse capacity data on the Series $10$ generator from the accounting department $($see Table C$\mathrm{.}1).$ She wonders what effects these new developments will have on her cost structure.

Table C$\mathrm{.}1$ Cost and Warehouse Capacity

Cost of unloading engines into the warehouse

$$0\mathrm{.}35($per $100/$wt$.)$

Order processing cost per requisition

$$120$

Warehouse Capacity

$150$ units

Outside warehouse costs

$$49$ per year per unit$*$

Expediting cost per requisition

$$30$

Inventory carrying cost

$30\%$

$*$ There is existing space in the warehouse for $200$ units. Additional space must be leased for a year. If an order is more than $150$ units, part of the order must be stored in the leased space.

Assignment Questions

What are PAE$$s total costs per year prior to the new price structure when the Series $10$ generator$$s price was $$410?$ Was PAE using the EOQ method?

With all$-$units quantity discounts and warehouse constraints, what is the best ordering quantity?

With purchase discounts and different rates, how are costs and EOQ affected?

How will these changes impact the lean manufacturing philosophy at PAE?

Determine the cost impact of using Texas supplier. How will the change in supplier for the Series $10$ generator affect PAE$$s sales?