Company A:   An Electronic retail chain wishes to minimize costs for a particularly popular model of laptop computer. This retail chain...

Company A:

An Electronic retail chain wishes to minimize costs for a particularly popular model of laptop computer. This retail chain has a line of credit to finance its inventory and the current holding rate is 5%. The chain estimates it can sell $70,000 units per year and it pays $400 dollars per unit. It costs $34 dollars to place each order. How many units should it order each time? You should round your answer up to the nearest laptop unit.

Company B:

A Manufacturer of laptop computers operates a plant with an annual capacity of 15,470,000 laptop units. One of its models is expected to sell 910,000 units in the coming year. How large should each product lot be if it costs $400 to change production for one model to another. Assume that the manufacturer values each laptop unit eat $200 dollars and it has a holding rate of 6%. You should round your answer to the nearest laptop unit.