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An electronics company has two contract manufacturers in Asia Foxconn assembles its tablets and smart phones and Flextronics assembles its laptopsMonthly demand for tablets and smartphones is 9,000 units, whereas that for laptops is 5,000. Tablets cost the company $100, laptops cost $400 and the company has an annual holding cost of 20 percent Currently the company has to place separate orders with Foxconn and Flextronics and receives separate shipments. The fixed cost of each shipment is $10,000What is the optimal order size and order frequency with each of Foxconn and Flextronics?.

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An electronics company has two contract manufacturers in Asia Foxconn assembles its tablets and smart phones and Flextronics assembles its laptopsMonthly demand for tablets and smartphones is 9,000 units, whereas that for laptops is 5,000. Tablets cost the company $100, laptops cost $400 and the company has an annual holding cost of 20 percent Currently the company has to place separate orders with Foxconn and Flextronics and receives separate shipments. The fixed cost of each shipment is $10,000What is the optimal order size and order frequency with each of Foxconn and Flextronics?

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An electronics company has two contract manufacturers in Asi.pdf

  • 1. An electronics company has two contract manufacturers in Asia Foxconn assembles its tablets and smart phones and Flextronics assembles its laptopsMonthly demand for tablets and smartphones is 9,000 units, whereas that for laptops is 5,000. Tablets cost the company $100, laptops cost $400 and the company has an annual holding cost of 20 percent Currently the company has to place separate orders with Foxconn and Flextronics and receives separate shipments. The fixed cost of each shipment is $10,000What is the optimal order size and order frequency with each of Foxconn and Flextronics?