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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.
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?
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