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Ryan
Ryan, Engineer
Category: Business and Finance Homework
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Company A: An electronic retail chain wishes to minimize

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Company A:
An electronic retail chain wishes to minimize costs for a particular popular model of laptop computer. This retail chain has a line of credit to finance its inventory and the current holding rate is 5%. The chain estimates it can sell 70,000 units per year and it pays $400 dollars per unit. It costs $34 dollars to place each order. How many units should it order each time? You should round your answer up to the nearest laptop unit.
Company B:
A manufacturer of laptop computers operates a plant with an annual capacity of 15,470,000 laptop units. One of its models is expected to sell 910,000 units in the coming year. How large should each product lot be if it costs $400 to change production from one model to another. Assume that the manufacturer values each laptop unit at $200 dollars and it has a holding rate of 5%. You should round your answer up to the nearest laptop unit.

Hi,

Thank you for using the site. I'll be happy to help you with these problems. I'll have the solutions posted for you shortly.

Thanks,

Ryan

Hi again,

Here are the solutions for these problems:

OrderSize

Please feel free to ask if you have questions about these solutions.

Thanks,

Ryan

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