7. A Spanish company is considering moving manufacturing from Spain to Mexico. 3 hours of labor are required per item wi

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7 A Spanish Company Is Considering Moving Manufacturing From Spain To Mexico 3 Hours Of Labor Are Required Per Item Wi 1 (52.37 KiB) Viewed 70 times

7. A Spanish company is considering moving manufacturing from Spain to Mexico. 3 hours of labor are required per item with Spanish cost of 25 Euros per hour and Mexican of 5 per hour. Spanish holding cost per week is 2 euros and in Mexico 1.5 euros. Orders are placed veekly and lead time in Spain is 3 weeks. In Mexico, lead time is 15 weeks. Demand is normally I distributed with mean 500 and standard deviation 100.and uses 3 standard deviations as its safety factor. A) If it keeps production in Spain, on average how many units of inventory will it have on hand and on order? B) If it moves production to Mexico, on average how many units of inventory will it have on order and on hand? C) In Spain, what is its holding cost per item? D) In Mexico, what is its holding cost per item?