Answered step by step
Verified Expert Solution
Question
1 Approved Answer
1 . Sony Electronics hires Mr . Mark Gunther of Brockhart & Kaitlin in order to manage inventory operations. Sony has a supplier that produces
Sony Electronics hires Mr Mark Gunther of Brockhart & Kaitlin in order to manage inventory operations. Sony has a supplier that produces electronic circuit boards for its TV sets. Sony currently pays $ for each circuit boards, and consumes an estimated boards in a year. It costs Sony $ to place an order to its supplier. The unit inventory holding cost is estimated to be equal to of the purchasing price. Determine the economic order quantity for Sonys outsourcing alternative.
Given the economic order quantity that you found for Question calculate the associated annual total cost including ordering, inventory holding and purchasing costs for Sonys outsourcing alternative.
Sonys engineers inform Mark Gunther that a new facility soon to be fully operational within the supply chain of the company can actually produce the same circuit boards of Problem The unit manufacturing cost at this plant is estimated to be equal to $ per board. The setup cost is equal to $ The plant is scheduled to work for days and has a daily demand of boards corresponding to an annual demand of while having the capability of producing at a rate of boardsday As in the outsourcing alternative of Problem the unit inventory holding cost is of the unit manufacturing cost. Compute the economic production quantity.
Given the economic production quantity that you calculated for Question find the associated annual total cost including setup, inventory holding and manufacturing costs for Sonys manufacturing alternative.
Given your answers for question and question determine whether Sony should choose outsourcing or manufacturing alternative. A Sony should choose manufacturing alternative B Sony should choose outsourcing alternative.
The supplier Sony Electronics uses in Problem and produces a new and updated price list based on increased order quantities. The following list shows the new prices: Using the same ordering cost information available in Problem what is the optimal order quantity for Sony?
Order Quantity Unit Price per Circuit Card $ $ $ $
Using the same ordering cost information available in Problem and the optimal order quantity for Sony in Problem calculate the associated annual total cost for the outsourcing alternative with price discounts.
The answer to question is units, I need the solution and answer to the other parts of the problem. Thank you!
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started