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?

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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
Transcribed Image Text: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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