CHAPTER ON INVENTORY MANAGEMENT

QUESTION $5$

A$.$ Subang Jaya Computers Sales and Service Sdn$.$ Bhd$.($SJCSS$)$ purchases $8,000$

transistors each year as components in minicomputers. The unit cost of each transistors is RM

$20,$ the cost of carrying $($or holdign cost$)$ one transistor in inventory for a year is RM $3\mathrm{.}00.$

Ordering Cost is RM $30$ per order.

What are;

$($i$)$ the optimal order quantity

$($ii$)$ the expected number of orders placed each year, and

$($iii$)$ the expected time between orders?

Assume SJCSS operates on a $200-$day working year.