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3. Wilmington Corporation expects to order 126,000 memory chips for inventory during the coming year, and it will use this inventory at a constant rate.
3. Wilmington Corporation 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 cost is equal to 20 percent of the purchase price. (Assume a 360-day year.) a. What is the economic ordering quantity for chips? b. How many orders should Wilmington place during the year? c. What is the total inventory cost of Wilmington? d. Should they take the discount offered as 0.5% of the price if 4000 or higher units ordered
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