Question: please answer a. (*) What is the economic order quantity for the laptops? Calculate annual ordering costs and holding costs (ignoring safety stock) for the
please answer
a. (*) What is the economic order quantity for the laptops? Calculate annual ordering costs and holding costs (ignoring safety stock) for the EOQ. b. (**) What is the reorder point for the laptops? How much of the reorder point consists of safety stock? c. (**) Suppose Gateway decides to order 64 laptops at a time. What would its yearly ordering and holding costs (ignoring safety stock) for the monitor be? d. (**) Because computer technologies become obsolete so quickly, Gateway is thinking about raising holding costs from 40% of item cost.to some higher percentage. What will be the impact on the economic order quantity for laptops? Explain why. For parts e and f, use the following formula to consider the impact of safety stock (SS) on average inventory levels and annual holding costs: (2Q+SS)H e. (**) What is the annual cost of holding inventory, including the safety stock? How much of this cost is due to the safety stock? f. ( 7) Suppose Gateway is able to cut the lead time to a constant 1 week. What would the new safety stock level be? How much would this reduce annual holding costs
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