1. 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.
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 Fisher operates on a 200day working year.
2. Lindsay Electronics, a small manufacturer of electronic research equipment, has
approximately 7,000 items in its inventory and has hired Joan Blasco-Paul to manage its
inventory. Joan has determined that 10% of the items in inventory are A items, 35% are
B items, and 55% are C items. She would like to set up a system in which all A items are
counted monthly (every 20 working days), all B items are counted quarterly (every 60
working days), and all C items are counted semiannually (every 120 working days). How
many items need to be counted each day?