A small computer manufacturer uses $32,000$ computer chips annually. The chips are used at a steady

rate during $8$ hours operations per day, $250$ days a year. Annual holding cost is $80$ cents per chip, and

ordering cost is $$24$ per order. They purchase the chips from a Korean company for $$12$ each. An order

arrives after three working days of order placement. Answer the following questions.

Clearly show all the procedures leading to your answers.

$1)$ Determine an order quantity of the chips that minimizes total cost. $(5$ points$)$

$2)$ Currently they order $5000$ chips each time. How much can the store save annual cost by changing

the order size to that calculated in $1)?(10$ points$)$

$3)$ Find the time interval between orders at the order quantity found in $1).(10$ points$)$

$4)$ Find reorder point $(5$ points$)$