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Assume you've been hired as a management trainee (MT) as a result of your excellent intern performance, specifically your MRP for the new product T. You've been tasked with overseeing the procurement of a microchip MC unique part that will be utilized widely in the company's new product lines.

The annual demand for MC is anticipated to be 200,000 units at a price of $100 per unit. Each unit's annual holding cost is expected to be 2% of the unit price, with an ordering cost of $3000 per order. The company has an MC supplier in the United States that offers a 1% discount on unit price for orders of more than 30,000 units with a 30-day lead time. The supplier and the company both work 300 days a year.

Question:

1(a) the EOQ for unit price of $100

1(b) the total cost for unit price of $100,

1(c) the best order quantity

1(d) the minimum total cost for the best order quantity

1(e) the number of orders placed per year for the best order quantity.

1(f) the reorder point (ROP) for the best order quantity.

1(g) Regard to the source of the special part of microchip MC, what issues would you consider with reasons for your final recommendation?