Question: You operate a computer store where demand for a particular laptop is 36,000 per year. Due to the price of security, your annual inventory costs
You operate a computer store where demand for a particular laptop is 36,000 per
year. Due to the price of security, your annual inventory costs are 50% of what you paid for a
computer. The supplier of the computer charges an order cost of $80,000 independent of the
size of the order. You must order an integer number of computers. In addition, the supplier
applies an all-units discount scheme depending on the size of your order. This scheme is:
Order Quantity Price per Computer
[1; 2000] $1800
[2001; 2800] $1500
[2801; 3600] $1200
[3600;1] $1050
(a) [25 points] For each order quantity range (listed in the table), identify the demand rate,
ordering costs, inventory cost, the EOQ value, and the optimal order amount assuming you
must order within that range. (b) [5 points] Determine the optimal ordering amount for this
particular type of computer.
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