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 and finds that deliveries from his supplier generally take 5 working days. What are? (a) the optimal order quantity. (b) the expected number of orders placed each year. (c) the expected time between orders? Assume that Fisher operates on a 200-day working year. (d) the reorder point for the transistors.
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 and finds that deliveries from his supplier generally take 5 working days. What are? (a) the optimal order quantity. (b) the expected number of orders placed each year. (c) the expected time between orders? Assume that Fisher operates on a 200-day working year. (d) the reorder point for the transistors.
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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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 and finds that deliveries from his supplier generally take 5
working days. What are?
(a) the optimal order quantity.
(b) the expected number of orders placed each year.
(c) the expected time between orders? Assume that Fisher operates on a 200-day working year.
(d) the reorder point for the transistors.
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