PA 11-7 (Algo) A laptop manufacturer wants to compare the total... 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 $4.0 per week in the United States and $3.5 per week in Taiwan. The lead time with U.S. production is 2 week, whereas it is 8 weeks with production in Talwan. In addition, it costs $2.50 to ship laptops to the United States from Taiwan. Weekly demand is 1,200 laptops, with a standard deviation of 1,000. (Do not round intermediate calculations. Round your answer to 2 decimal places.) a. What is the per unit holding cost of a laptop with U.S. production? per unit (Do not round intermediate calculations. Round your answer to 2 decimal places.) b.What is the per unit holding cost of a laptop with production in Taiwan? per unit (Round intermediate calculations to 2 decimal places. Round your answer to 2 decimal places.) A laptop requires 30 minutes of labor to assemble in the Unied States or in Taiwan. c. The total cost of labor in the United States is $44 per hour, while in Taiwan it is $12. What is the change in cost per laptop if it switches production to Taiwan? per unit
PA 11-7 (Algo) A laptop manufacturer wants to compare the total... 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 $4.0 per week in the United States and $3.5 per week in Taiwan. The lead time with U.S. production is 2 week, whereas it is 8 weeks with production in Talwan. In addition, it costs $2.50 to ship laptops to the United States from Taiwan. Weekly demand is 1,200 laptops, with a standard deviation of 1,000. (Do not round intermediate calculations. Round your answer to 2 decimal places.) a. What is the per unit holding cost of a laptop with U.S. production? per unit (Do not round intermediate calculations. Round your answer to 2 decimal places.) b.What is the per unit holding cost of a laptop with production in Taiwan? per unit (Round intermediate calculations to 2 decimal places. Round your answer to 2 decimal places.) A laptop requires 30 minutes of labor to assemble in the Unied States or in Taiwan. c. The total cost of labor in the United States is $44 per hour, while in Taiwan it is $12. What is the change in cost per laptop if it switches production to Taiwan? per unit
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
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Transcribed Image Text:PA 11-7 (Algo) A laptop manufacturer wants to compare the total...
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
$4.0 per week in the United States and $3.5 per week in Taiwan. The lead time with U.S. production is 2 week, whereas it is 8
weeks with production in Talwan. In addition, it costs $2.50 to ship laptops to the United States from Taiwan. Weekly demand
is 1,200 laptops, with a standard deviation of 1,000.
(Do not round intermediate calculations. Round your answer to 2 decimal places.)
a. What is the per unit holding cost of a laptop with U.S. production?
per unit
(Do not round intermediate calculations. Round your answer to 2 decimal places.)
b.What is the per unit holding cost of a laptop with production in Taiwan?
per unit
(Round intermediate calculations to 2 decimal places. Round your
decimal places.)
A laptop requires 30 minutes of labor to assemble in the Unied States or in Taiwan.
c. The total cost of labor in the United States is $44 per hour, while in Taiwan it is $12.
What is the change in cost per laptop if it switches production to Taiwan?
to 2
per unit
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