-Read the below problem and try to solve it based on what you have learned so far:
1.
-A.) You are the purchasing manager of a large software company. One of your tasks is to procure new computers for employees. Company policy is to replace computers every three years. This year’s annual computer demand is 2,400 units. One of your suppliers offers the computer units for sales at $1,200 per unit for up to 199 units and $1,100 per unit for orders 200 units or more. The order cost is $1,000 per order and inventory holding cost is 30% per unit per year. Calculate the economic order quantity (EOQ) and the total costs for both options. Which option is acceptable?
2.
-B.) Due to occasional theft and accidents, the demand for computers is normally distributed with the mean of 200 units per month and standard deviation of 10 units per month. Lead time interval is 1 month. Determine the reorder point if you desire a service level of 0.05.
3.)
C. ) Write a paper with solutions to the problem while following the APA style and submit it.
*Hint: Before solving the problem you should look at examples given on pages 208 and 209 of your textbook.
Assigned Text
Johnson, P. F. (2019). Purchasing and Supply Management (16th ed.). McGraw-Hill Higher Education (US). https://reader2.yuzu.com/books/9781260394771