Question: Exhibit 23.2 Cartwright Computing expects to order 126,000 memory chips for inventory during the coming year, and it will use this inventory at a constant
Exhibit 23.2 Cartwright Computing expects to order 126,000 memory chips for inventory during the coming year, and it will use this inventory at a constant rate. Fixed ordering costs are $200 per order, the purchase price per chip is $25; and the firm's inventory carrying costs is equal to 20 percent of the purchase price. (Assume a 360-day year.) Refer to Exhibit 23.2. If the lead time for placing an order is 5 days, and Cartwright holds a safety stock equal to a 30-day supply of chips, then at what inventory level should an order be placed? Select one: O a. 15,570 b. 3,175 O c. 12,250 d. 8,124 O e. 13,675
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