A company needs to choose one supplier for a particular type of silicon wafer used'i semiconductors. The company has three options. Supplier A sells the silicon wafers independently of the number of wafers ordered. Supplier B sells the wafers for $2.40 consider an order for less than 2,000 wafers. Supplier C sells the wafers for $2.30 eac an order for less than 3,000 wafers. Assume an order setup cost of $100 and an annua wafers. Assume a 20% annual interest rate for holding cost calculations. a. Which supplier should be chosen to minimize the total annual cost for the wafe optimal order quantity? b. If the replenishment lead time for wafers is three months, determine the reorder hand level of inventory of wafers.
A company needs to choose one supplier for a particular type of silicon wafer used'i semiconductors. The company has three options. Supplier A sells the silicon wafers independently of the number of wafers ordered. Supplier B sells the wafers for $2.40 consider an order for less than 2,000 wafers. Supplier C sells the wafers for $2.30 eac an order for less than 3,000 wafers. Assume an order setup cost of $100 and an annua wafers. Assume a 20% annual interest rate for holding cost calculations. a. Which supplier should be chosen to minimize the total annual cost for the wafe optimal order quantity? b. If the replenishment lead time for wafers is three months, determine the reorder hand level of inventory of wafers.
Elements Of Electromagnetics
7th Edition
ISBN:9780190698614
Author:Sadiku, Matthew N. O.
Publisher:Sadiku, Matthew N. O.
ChapterMA: Math Assessment
Section: Chapter Questions
Problem 1.1MA
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QUESTION 2
A company needs to choose one supplier for a particular type of silicon wafer used'in the production of
semiconductors. The company has three options. Supplier A sells the silicon wafers for $2.50 per wafer,
independently of the number of wafers ordered. Supplier B sells the wafers for $2.40 each but does not
consider an order for less than 2,000 wafers. Supplier C sells the wafers for $2.30 each but does not accept
an order for less than 3,000 wafers. Assume an order setup cost of $100 and an annual requirement of 20,000
wafers. Assume a 20% annual interest rate for holding cost calculations.
a. Which supplier should be chosen to minimize the total annual cost for the wafers, and what is the
optimal order quantity?
b. If the replenishment lead time for wafers is three months, determine the reorder point based on the on-
hand level of inventory of wafers.
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QUESTION 3
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