Question: Please show full working and solutions a) Deluxe Computers Limited (DCL) purchases tablet computers from Technical Systems Limited (TSL). TSL sells the tablet computers at
Please show full working and solutions
a) Deluxe Computers Limited (DCL) purchases tablet computers from Technical Systems Limited (TSL). TSL sells the tablet computers at four (4) different price points, depending on the size of the order, as shown in Table 7 (below): Table 7. Technical Systems Limited's tablet computer prices The cost to place an order at DCL is $50. Annual demand is 45,000 units. The holding (or carrying) cost is 20 percent of the material price. (i) Calculate the EOQ at each Price Break. (4 Marks) (ii) Indicate which EOQs are feasible and those which are not feasible. (4 Marks) (iii) What is the economic order quantity that DCL should buy each time? (2 marks) b) The average daily demand for flash drives from Technical Systems (TSFL) is 45 units, with a standard deviation of 10 units. The review period is 28 days and the lead time is 7 days. Management has set a policy of satisfying 95 percent of the demand from items in stock. At the beginning of the review period, there are 172 units in inventory. i. How many units of flash drives should be ordered? (5 Marks) ii. A newly installed manager wants to raise the service probability requirement to 98 percent. 1. Will this result in an increase or decrease in the amount of flash drives to be ordered? (3 Marks) 2. Give reasons for your answer. (2 Marks)

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