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Assistants, Inc. uses approximately 2 8 . 8 0 0 microchips annually. The chips are used at a steady rate during the 2 5 0

Assistants, Inc. uses approximately 28.800 microchips annually. The chips are used at a steady rate during the 250 workdays that the plant operates. The price of each chip is $10.00 and the annual carrying cost is $200 per unit per year. The ordering cost is $50. Due to poor supplier delivery, the company has decided to maintain a safety stock (SS) of 1500 units. The lead time for ordering the chips is ten days.
Answer the following questlons.
a) What is the average inventory level of chips? units
b) What is the maximum inventory level of chips? units
c) What is the annual ordering cost? $
d) What is the annual carrying cost? $
e) What is the reorder point in units? units
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