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The super Computer is a computer store that sells various computer hardware and software. You have been given the following information regarding a certain laptop: Supply Chain Assignment, UCD, Ireland

University University College Dublin (UCD)
Subject Supply Chain

The super Computer is a computer store that sells various computer hardware and software. You have been given the following information regarding a certain laptop:

  • What is the EOQ for the laptop?
  • Calculate annual ordering and holding costs for the laptop. What do you notice and how would this affect your stocking policy?
  • If SuperComputer currently orders 120 laptops at a time, how much more or less would SuperComputer pay in annual holding and ordering costs if they were to order just 12 laptops at a time?
  • What is the reorder point for the laptop and how much of this consists of safety stock?
  • What are the annual holding costs when considering safety stock? How much of this cost is due to the safety stock being held?
  • If SuperComputer wants to reduce their order lead time to one week what would be the new safety stock and how would this affect annual holding costs?

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