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 $4 per week in the United States and $3.50 per week in Taiwan. The lead time with U.S. production is 2 weeks, whereas it is 9 weeks with production in Taiwan. In addition, it costs $2 to ship laptops to the United States from Taiwan. Weekly demand is 5442 laptops with a standard deviation of 800. How much more inventory (on-order and on-hand) will the manufacturer have, on average, if it manufacturers in Taiwan than if it manufactures in the United States? Please provide a numeric-only answer to two decimal places.

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 $4 per week in the United States and $3.50 per week in Taiwan. The lead time with U.S. production is 2 weeks, whereas it is 9 weeks with production in Taiwan. In addition, it costs $2 to ship laptops to the United States from Taiwan. Weekly demand is 5442 laptops with a standard deviation of 800. How much more inventory (on-order and on-hand) will the manufacturer have, on average, if it manufacturers in Taiwan than if it manufactures in the United States? Please provide a numeric-only answer to two decimal places.

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter2: Introduction To Spreadsheet Modeling

Section: Chapter Questions

Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...

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