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e) Amazon.com sells GeForce RTX 4090 graphic card ordered from NVIDIA in North and South America. The average demand is 5,000 units each month. Amazon.com

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e) Amazon.com sells GeForce RTX 4090 graphic card ordered from NVIDIA in North and South America. The average demand is 5,000 units each month. Amazon.com incurs a fixed order placement, transportation, and receiving cost of $4,500 each time an order is placed with NVIDIA. It also incurs a holding cost of 10 per cent of the unit cost of the product. The normal wholesale price is $600 per unit. Recently, NVIDIA offers all-unit quantity discount to its retailers to promote sales. The price schedule is as follows: 1) What is the economic order quantity (EOQ) of GeForce RTX 4090 graphic card per lot for Amazon.com if there is no volume discount? (1 mark) 2) What is the total annual cost for Amazon.com assuming there is no volume discount from NVIDIA and the price per unit is $600 ? (1 mark) 3) What is the optimal order quantity if Amazon.com decides to take the volume discount? (2 marks) 4) What is the new total annual cost for Amazon.com upon taking the volume discount? (2 marks) 5) What is the annual saving for Amazon.com upon taking the quantity discount in comparison with the normal situation when there is no volume discount? (1 mark) f) Conduct your own research and find out what the high-end graphics processing unit manufacturing (or computer gaming) industry usually does in forecasting demand. You may wish to analyse and discuss based on product value, product volume, and product flow as different product characteristics may require different methods to forecast the demand accurately. Give examples and use up-to-date references to support your arguments. (6 marks)

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