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? b. What is the expected number of orders placed each year? c. What is the expected time between orders? d. 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 a 200-day working year. a. What is the optimal order quantity? b. What is the expected number of orders placed each year? c. What is the expected time between orders? d. What is the total cost?
Chapter18: The Management Of Accounts Receivable And Inventories
Section: Chapter Questions
Problem 21P
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