Question: please solve this question....don't use excel or any other tools to solve...pen and paper 3. Apple Inc. has two contract manufacturers Asia: Foxconn assembles its

please solve this question....don't use excel or any other tools to solve...pen and paper
3. Apple Inc. has two contract manufacturers Asia: Foxconn assembles its tablets and smart phones and Flextronics assembles its laptops. Monthly demand for tablets and smartphones is 10,000 units, whereas that for laptops is 4,000. Tablets cost the company $100, laptops cost $400, and the company has a holding cost of 25 percent. Currently the company has to place separate orders with Foxconn and Flextronics and receives separate shipments. The fixed cost of each shipment is $10,000. Apple Inc. is thinking of combining all assembly with the same contract manufacturer. This will allow for a single shipment of all products from Asia. If the fixed cost of each shipment remains $10,000, what is the optimal order frequency and order size from the combined orders? How much reduction in cycle inventory can the company expect as a result of combining orders and shipments? Will there be any savings in the total inventory costs? (15 marks) (L4) (CO2)Step by Step Solution
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