Question: If you can answer B,C,D plz. Show steps Pear Computers Inc. procures processors from HIntel, the largest manufacturer of processors and chips in the world.

If you can answer B,C,D plz. Show steps Pear

If you can answer B,C,D plz. Show steps

Pear Computers Inc. procures processors from HIntel, the largest manufacturer of processors and chips in the world. In order to test the performance of Hintel's new processor, Pear wants to incorporate it to its newest model (known as the HackBook Pro), and must decide how many processors to order. Each processor costs $200, and the company estimates that the average monthly demand for the HackBook Pro will be 3000 units. In addition, the cost of placing an order is $1000, and the company estimates that the annual holding cost is 25% of Hintel's processor cost. a. (5 points) What is the optimal quantity order? Suppose now that, instead of purchasing processors from Hintel, Pear Computers is evaluating to manufacture their own processors (the new ARN processor). The company estimates that they can produce 40000 processors per year in a new factory they would have to rent and that would cost $1 million. In addition, the company estimates that that the cost of starting each production run would be $40000, and that producing each processor would cost $150. The annual inventory holding cost is the same as before, i.e., $50 per unit. b. (5 points) What is the optimal quantity of processors to produce? C. (5 points) What option leads to the lowest total inventory cost (i.e., holding cost plus ordering or setup cost)? d. (5 points) Should Pear Computers produce their own processors

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