Question: please help to answer 2d only thank you very much Question 2 (20 marks) InfoTech Company Limited (Infotech) manufactures computers. The company purchases chipsets from

 please help to answer 2d only thank you very much Question
please help to answer 2d only thank you very much

Question 2 (20 marks) InfoTech Company Limited (Infotech) manufactures computers. The company purchases chipsets from various suppliers in Mainland China. Annual demand is 360,000 units Infotech uses an EOQ model to determine the number of unit of chipsets the company should order for its manufacturing plant. The ordering cost is $380 per order. The annual carrying cost is $4.8 per unit. The average weekly demand is 7,500 units per week (360,000 units + 12 months - 4 weeks). Each stock out would result in an average additional cost of $5 per unit. The order lead time is one week. Required: (Round up your answer to the nearest integer, if needed) (a) What is the optimal number of unit that Infotech should order according to the EOQ model? (2 marks) (b) At what point should infotech reorder chipsets? (1 marks) (c) Now assume that the weekly demand can vary with following probability distribution: (13 marks) 7.500 6,500 units 0.05 7,000 units 8,000 units 8,500 units Total demand for 1 week Probability (sums to 1.00 units 0.15 0.55 0.2 0.05 How much safety stocks should infotech hold? How will this affect the reorder point? (d) (4 marks) Infotech is considering whether to adopt Just-in-time (JIT) purchasing and believes that JIT has advantages over using the EOQ model. Identify THREE benefits of IT purchasing. What is the main risk of JIT purchasing

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