Need help with the highlighted part 5. The Warren W. Fisher Computer Corporation purchases8,000 transistors each year as components inminicomputers. The unit cost of each transistor is $10, andthe cost of carrying one transistor in inventory for a yearis $3. Ordering cost is $30 per order.Assume that Fisher operates on a 200-day working year.a. What is the optimal order quantity?a. What is the expected number of orders placed eachyear?b. What is the expected time between orders?What is the total cost?C.The optimal order quantity is 400 unitsThe expected number of orders placed per year would be 20 ordersThe expected time between the orders would be 20 daysPage 1 of 5

Given Data Annual demand (D) = 8000 transistors or units Ordering cost (S) = $30 per order Cost of…

The Warren W. Fisher Computer Corporation purchases 8,000 transistors each year as components in minicomputers. The unit cost of each transistor is $10, and the cost of carrying one transistor in inventory for a year is $3. Ordering cost is $30 per order. Assume that Fisher operates on 200- day working year. a. What is the optimal order quantity? a. What is the expected number of orders placed each year? b. What is the expected time between orders? c. What is the total cost?

The Warren W. Fisher Computer Corporation purchases 8,000 transistors each year as components in minicomputers. The unit cost of each transistor is $10, and the cost of carrying one transistor in inventory for a year is $3. Ordering cost is $30 per order. Assume that Fisher operates on 200- day working year. a. What is the optimal order quantity? a. What is the expected number of orders placed each year? b. What is the expected time between orders? c. What is the total cost?

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter2: Introduction To Spreadsheet Modeling

Section: Chapter Questions

Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...

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Need help with the highlighted part

5. The Warren W. Fisher Computer Corporation purchases
8,000 transistors each year as components in
minicomputers. The unit cost of each transistor is $10, and
the cost of carrying one transistor in inventory for a year
is $3. Ordering cost is $30 per order.
Assume that Fisher operates on a 200-
day working year.
a. What is the optimal order quantity?
a. What is the expected number of orders placed each
year?
b. What is the expected time between orders?
What is the total cost?
C.
The optimal order quantity is 400 units
The expected number of orders placed per year would be 20 orders
The expected time between the orders would be 20 days
Page 1 of 5

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