What is the optimal order quantity

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Reference no: EM132245126

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) The expected number of orders placed each year

Reference no: EM132245126

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