26. ABC Company has a demand for 2000 units each year. The cost of each unit is $100. It costs ABC $200 to place an order and $4 to carry a unit in the stock pear year. Further, the supplier needs week and a half to deliver their order. Assume 50 weeks to a year. a. Calculate the total annual cost of the system. 27. The VAHC Lab uses 500 test kits each year. CO = $10, CH = $2/ kit/ year. Orders of fewer than (A) 73 kits cost $60/case; (B) 73 through 144 kits cost $55/ kit; and (C) larger orders cost $50/ kit. a. Determine the optimal order quantity. 28. The VAHC Lab uses 500 test kits each year. CO = $10, CH = $2/ kit/ year. Orders of fewer than (A) 73 kits cost $60/case; (B) 73 through 144 kits cost $55/ kit; and (C) larger orders cost $50/ kit. a. Determine which order volume gives the most discount. 29. Ashlee's Beach Chairs Company produces upscale beach chairs. Annual demand for the chairs is estimated at 1,000 units. The frames are made in batches before the final assembly process. Ashlee's final assembly department needs frames at a rate of 20 per week. Ashlee's frame department can produce 25 frames per week. The setup cost is $100/setup, the annual holding cost per frame is $4, and the cost of production $30 a frame. The company operates 50 weeks per year. Find the optimal batch quantity. 30. Ashlee's Beach Chairs Company produces upscale beach chairs. Annual demand for the chairs is estimated at 1,000 units. The frames are made in batches before the final assembly process. Ashlee's final assembly department needs frames at a rate of 20 per week. Ashlee's frame department can produce 25 frames per week. The setup cost is $100/setup, the annual holding cost per frame is $4, and the cost of production $30 a frame. The company operates 50 weeks per year. Find the total cost of the system. Using the Factoring Rate Method table which location is best? Key Success Factors Weight Labor market People to car ratio Per capita income Tax structure Education & health Totals .20 .05 .10 .40 .25 Scores (Out of 100) Weighted scores China Taiwan 80 50 80 70 60 60 60 80 70 70 China Taiwan 32.Drew Rosen Corp. is considering adding a fourth plant to its three existing plants in Decatur, Minneapolis and Carbondale. Both St. Louis and East St. Louis are being considered. Evaluating only the transportation costs per units as provided, decide which site is best. From Existing Plants To Decatur Minneapolis Carbondale Demand Blue Earth $20 $17 $21 250 Ciro $25 $27 $20 200 Desmoines $22 $25 $22 350 Capacity 300 200 150 From Proposed Plants To East St. Louis St. Louis Blue Earth $29 $27 Ciro $30 $28 Desmoines $30 $31 Capacity 150 150