question archive Mac-in-the-Box sells computer equipment by mail and telephone order
Mac-in-the-Box sells computer equipment by mail and telephone order
Subject:ManagementPrice: Bought3
Mac-in-the-Box sells computer equipment by mail and telephone order. Mac sells 2,400 flat-bed scanners per year. Ordering cost is $300 and the annual holding cost is 25 percent of the item’s price. There are 300 working days in the year and the lead time is 3 days. The scanner manufacturer offers the following price structure to Mac-in-the Box:
| Order Quantity | Price per Unit |
| 1 to 199 | $520.00 |
| 200 to 499 | $515.00 |
| 500 or more | $512.00 |
- Given the above information and basing your decision on the economics, what order quantity do you recommend that Mac order from the scanner manufacturer? Why?
- What is the low cost for each of the three Price per Unit options?
- For the optimal order quantity, what is the inventory position immediately after an order is placed?
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Must show work and explain answers! 1. Mac-in-the-Box sells computer equipment by mail and telephone order. Mac sells 2,400 flat-bed scanners per year. Ordering cost is $300 and the annual holding cost is 25 percent of the item’s price. There are 300 working days in the year and the lead time is 3 days. The scanner manufacturer offers the following price structure to Mac-in-the Box: Order QuantityPrice per Unit1 to 199$520.00200 to 499$515.00500 or more$512.00 Given the above information and basing your decision on the economics, what order quantity do you recommend that Mac order from the scanner manufacturer? Why? What is the low cost for each of the three Price per Unit options? For the optimal order quantity, what is the inventory position immediately after an order is placed? 2. The Austin, Texas plant of Computer Products produces disk units for personal and small business computers. Gerald Knox, the plant’s production planning director, is looking over next year’s sales forecast for these products and will be developing an aggregate capacity plan for the plant based on this forecast. The quarterly sales forecasts for the disk units are as follows: 1st Quarter2nd Quarter3rd Quarter4th Quarter1,8001,9802,3401,800 Ample machine capacity exists to produce the forecast. Each disk unit takes an average of 20 labor-hours. In addition, you have collected the following information: Inventory holding or carrying cost is $100 per disk unit per quarter. The holding cost is based on the inventory at the end of each quarter. The plant works the same number of days in each quarter, 12 five-day weeks, 6 hours per day. Beginning inventory is zero disk units. In a backlog situation, the customer will wait for his order to be filled but will expect a price reduction each quarter he waits. The price reduction is $300 per disk for the first quarter the customer waits, $700 for the second quarter the customer waits, and $900 for...
