Question
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
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 $3.8 per week in the United States and $3.3 per week in Taiwan. The lead time with U.S. production is 2 week, whereas it is 8 weeks with production in Taiwan. In addition, it costs $2.75 to ship laptops to the United States from Taiwan. Weekly demand is 800 laptops, with a standard deviation of 600.
what is the pre unit holding cost of a loptop US production and Taiwan?
A laptop requires 40 min of labor to assemble in the united states or in taiwan. the total cost in of labor in US is $39 while in taiwan is $9. what is the change in the cost per laptop if it switches production to taiwan?
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