How many memory chips should you have on hand

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Reference no: EM133897067

Problem

A PC assembly operation procures its 512Mb memory chips at $50 each from a foreign vendor; in addition, each order also costs $500 in customs fees. It takes 3 weeks to receive an order. Assuming a constant demand of 2025 chips per month and a holding cost is based on an annual interest rate of 15%. To minimize the relevant cost, How often do you order? What is the total cost (sum of ordering and holding cost)? Get the instant assignment help. How many memory chips should you have on hand when you place an order (assuming 4 weeks per month)?

Reference no: EM133897067

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How many memory chips should you have on hand : How often do you order? What is the total cost (sum of ordering and holding cost)? How many memory chips should you have on hand when you place an order?

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