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Question: test assignment 1 a computersupply mail order house has a...

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TEST Assignment 1 A computer-supply mail- order house has a memory chips in inventory that it sells to customers around the coutry. A Japanese manufacture supplies theitem using airfreigt. It has following characteristics:m Annual demand 1.200 units Leadtime Holding costs -25% per year Purchase price, delivered 75 USD per unit Ordering cost 25USD per unit - 1 week 1. Design a reorder point method of control for this item. Plot orders time diagramme. 2. What are the annual ordering and holding cost if your design is used ? 3. Suppose that the lead time stretches to three weeks, so that ROP > EOQ. What adjustments would you suggest making in the control policy? Plot time diagramme and give explanations.

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