A: Hayes Electronics stocks and sells a particular brand of computer. It costs the firm $450 each time it places an order with the manufacturer for the computers. The cost of carrying one computer for a year is $170. The owner estimate that total annual demand for the computers will be 1,500 units, with a constant demand rate throughout the year. Orders are received within 1 day after placement from a local warehouse maintained by the manufacturer. The store policy is to never have stock out of the microcomputers. The cost of each microcomputer is $650. The store is open 300 days for business every year. Determine question 1 to 4 based on this question: What is the economic order quantity (approximate)? A. 7941 B. 1500 C. 89 D. 45 QUESTION 2 What is the reorder point? A. 5 B. 4 C. 3 D. 2 What is the annual ordering cost (approximately)? A. $7,984 B. $1,500 C. $15,148 D. $7,574 What is annual holding cost (approximately)? A. $7,984 B. $1,500 C. 7,574 D. $15,968 Based on above problem (A), the owner of Hayes Electronics decided to assemble the computers in-house. He estimates that the cost of assemble each microcomputer will be $550. The setup cost of each run to assemble microcomputers is $1,000. Also, he estimates that he can produce daily 10 microcomputers. The annual demand and carrying cost per unit per year will be the same as described in problem A. Determine question 5 to 9 based on this question: Find the optimal production runs quantity (approximately)? A. 35 B. 47 C. 94 D. 188 What would be the maximum inventory level (approximately)? A. 35 B. 94 C. 188 D. 47 What is the annual holding cost (approximately)? A. $7,984 B. $15,000 C. $15,148 D. $7,574 What would be the annual setup cost (approximately)? A. $7,984 B. $1,500 C. $15,148 D. $7,574 What would be the total number of production runs (approximately)? A. 8 B. 16 C. 24 D. 32 Based on problem A and B, recommend which one is the best for Hayes Electronic (Buying the computers or producing the computers in-house)? A. Buying the computers. B. Producing the computers. C. Either buying or producing the computers. D. None of the above