Please can you answer question 17 - 20.

Also, please can you show the works on how you arrive at the final answer? Thank you!

The decision as to whether to send production to China involves a number of issues. Table 11.11 provides a cost comparison between production in San Francisco and in China. There is clearly a dramatic difference in labor costs on a per-hour basis, but the workers in San Francisco are slightly more productive (they require 49 minutes per bag instead of 63 minutes). Material costs do not differ between the two options, because in both cases materials are procured in China. It costs $1 per bag to send it from China via ocean carrier, but the lead time is probably eight weeks when all of the steps are accounted for (e.g., production, movement to the port, and actual shipping). To get a faster lead time would require air shipments, but that is much more expensive: $15 per bag. TABLE 11.11 Production and Shipment Costs per Bag by Production Location San Francisco China Comments Hourly wage $12.50 $1.25 Includes benefits Labor content 49 minutes 63 minutes Materials $13 $13 Other $1.50 $0.75 Includes manufacturing items such expenses as insurance, equipment maintenance, and warranty expenses Shipment to $0 1 By ocean San Francisco carrier. Air freight is $15 per bag. Shipment from $3 $3 San Francisco to customers Of course, Table 11.11 doesn't tell the entire story. There would be costs associated with finding a good supplier and monitoring that supplier. And it isn't clear how Timbuk2's customers would react to the move-from its start, Timbuk2 emphasized with pride that it was made in San Francisco Does moving production to China eliminate part of the brand's Part 3 of 4 - Timbuk2 This part is based on the Timbuk2 case at the end of chapter 11 of the Cachon textbook. Timbuk2 is considering moving production of wholesale bags to China. It can place orders with its Chinese supplier every four weeks; that is, one period equals four weeks. Its lead time is two periods; that is, L=2. Average demand for one type of wholesale bag is 200 bags per period (i.e. they sell, on average, 200 bags every four weeks), with a standard deviation of 100 bags. The holding cost for each bag for each period is $1, and it would operate with a 2.5 safety factor. Question 17 of 21 5 Points If Timbuk2 moves production of wholesale bags to China how much on-order inventory would it have, on average? A. 600 B. 400 C. 300 D. 500 Reset Selection Question 18 of 21 5 Points If Timbuk2 moves production of wholesale bags to China, how much on-hand inventory would it have, on average? A. 533.01 B. 433.01 C. 633.01 D. 333.01 Reset Selection Question 19 of 21 5 Points If Timbuk2 moves production of wholesale bags to China, what would be its total inventory holding cost per period? A. $933.01 B. $633.01 C. $833.01 D. $733.01 Reset Selection Question 20 of 21 5 Points If Timbuk2 moves production of wholesale bags to China, what would be its inventory holding cost per bag? A $3.17 B. $2.17 C. $4.17 D. $5.17 Reset Selection The decision as to whether to send production to China involves a number of issues. Table 11.11 provides a cost comparison between production in San Francisco and in China. There is clearly a dramatic difference in labor costs on a per-hour basis, but the workers in San Francisco are slightly more productive (they require 49 minutes per bag instead of 63 minutes). Material costs do not differ between the two options, because in both cases materials are procured in China. It costs $1 per bag to send it from China via ocean carrier, but the lead time is probably eight weeks when all of the steps are accounted for (e.g., production, movement to the port, and actual shipping). To get a faster lead time would require air shipments, but that is much more expensive: $15 per bag. TABLE 11.11 Production and Shipment Costs per Bag by Production Location San Francisco China Comments Hourly wage $12.50 $1.25 Includes benefits Labor content 49 minutes 63 minutes Materials $13 $13 Other $1.50 $0.75 Includes manufacturing items such expenses as insurance, equipment maintenance, and warranty expenses Shipment to $0 1 By ocean San Francisco carrier. Air freight is $15 per bag. Shipment from $3 $3 San Francisco to customers Of course, Table 11.11 doesn't tell the entire story. There would be costs associated with finding a good supplier and monitoring that supplier. And it isn't clear how Timbuk2's customers would react to the move-from its start, Timbuk2 emphasized with pride that it was made in San Francisco Does moving production to China eliminate part of the brand's Part 3 of 4 - Timbuk2 This part is based on the Timbuk2 case at the end of chapter 11 of the Cachon textbook. Timbuk2 is considering moving production of wholesale bags to China. It can place orders with its Chinese supplier every four weeks; that is, one period equals four weeks. Its lead time is two periods; that is, L=2. Average demand for one type of wholesale bag is 200 bags per period (i.e. they sell, on average, 200 bags every four weeks), with a standard deviation of 100 bags. The holding cost for each bag for each period is $1, and it would operate with a 2.5 safety factor. Question 17 of 21 5 Points If Timbuk2 moves production of wholesale bags to China how much on-order inventory would it have, on average? A. 600 B. 400 C. 300 D. 500 Reset Selection Question 18 of 21 5 Points If Timbuk2 moves production of wholesale bags to China, how much on-hand inventory would it have, on average? A. 533.01 B. 433.01 C. 633.01 D. 333.01 Reset Selection Question 19 of 21 5 Points If Timbuk2 moves production of wholesale bags to China, what would be its total inventory holding cost per period? A. $933.01 B. $633.01 C. $833.01 D. $733.01 Reset Selection Question 20 of 21 5 Points If Timbuk2 moves production of wholesale bags to China, what would be its inventory holding cost per bag? A $3.17 B. $2.17 C. $4.17 D. $5.17 Reset Selection