A laptop manufacturer wants to compare the total cost of assembling its laptops in the United States versus Taiwan. All of the laptops will be sold in the United States. To evaluate inventory, it uses a safety factor of 2.25. The holding cost per laptop is $4 per week in the United States and $3.50 per week in Taiwan. The lead time with U.S. production one week, whereas it is eight weeks wil production in Taiwan. In addition, it costs $2 to ship laptops to the United States from Taiwan. Weekly demand is 1,000 laptops, with a standard deviation of 800. a. What is the per unit holding cost of a laptop with U.S. production? Note: Round your answer to 2 decimal places. Holding cost Holding cost $ b. What is the per unit holding cost of a laptop with production in Taiwan? Note: Round your answer to 2 decimal places. hann in $ 9.00 per unit c. A laptop requires 40 minutes of labor to assemble in the United States or in Taiwan. The total cost of labor in the United States is $40 per hour, while in Taiwan it is $10. What is the change in cost per laptop if it switches production to Talwan? Note: Round your answer to 2 decimal places. € 7.88 per unit calamit
A laptop manufacturer wants to compare the total cost of assembling its laptops in the United States versus Taiwan. All of the laptops will be sold in the United States. To evaluate inventory, it uses a safety factor of 2.25. The holding cost per laptop is $4 per week in the United States and $3.50 per week in Taiwan. The lead time with U.S. production one week, whereas it is eight weeks wil production in Taiwan. In addition, it costs $2 to ship laptops to the United States from Taiwan. Weekly demand is 1,000 laptops, with a standard deviation of 800. a. What is the per unit holding cost of a laptop with U.S. production? Note: Round your answer to 2 decimal places. Holding cost Holding cost $ b. What is the per unit holding cost of a laptop with production in Taiwan? Note: Round your answer to 2 decimal places. hann in $ 9.00 per unit c. A laptop requires 40 minutes of labor to assemble in the United States or in Taiwan. The total cost of labor in the United States is $40 per hour, while in Taiwan it is $10. What is the change in cost per laptop if it switches production to Talwan? Note: Round your answer to 2 decimal places. € 7.88 per unit calamit
Purchasing and Supply Chain Management
6th Edition
ISBN:9781285869681
Author:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson
Publisher:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson
Chapter16: Lean Supply Chain Management
Section: Chapter Questions
Problem 10DQ: The chapter presented various approaches for the control of inventory investment. Discuss three...
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