Question: QUESTION 2 Loyal Computer purchases 8000 transistors each year as components in minicomputers, The unit cost of each transistor is N$10.00, and the cost of

QUESTION 2

Loyal Computer purchases 8000 transistors each year as components in minicomputers, The unit cost of each transistor is N$10.00, and the cost of carrying one transistor in inventory for a year is N$ 3.00.Ordering cost is N$ 30 per order.

Required:

What are (a) the optimal order quantity, (b) the expected number of orders placed each year, and (c) the expected time between orders? Assume that Fishers operates on a 200-day working year.

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