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An electronics company has two contract manufacturers in 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 an annual
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. What is the
optimal order size and order frequency with each of Foxconn and
Flextronics?
The company 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?
Sagot :
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