1) Tesla needs to order custom processor chipsfior their cars. The annual demand is
50,000. It cost $5000 to place an order. The chips must be stored in an environmentally friendly location and cost $50 per chip to store annually. The factory is open 360 days a
year. What is the optimal order quantity? What is the number of workdays in an order cycle?



2) The Lancaster Tesla dealer is open to the public for customers to come to the store and test drive a car. On any given Saturday customer arrive at a rate of 5 customer per hour. It takes 1 employee about 30 minutes to complete the test drive with a customer. Some customers take shorter, some take longer. There is expected to be a wait, but what is the average number of customers waiting for service? This will allow Tesla to build the correct size waiting room. Also how long do customers wait in line. This will allow Tesla to plan alternative activities that can take place during the wait. As a manager, what would you recommend Tesla do about the current system in order to improve customer service?