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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 microchips annually. The chips are used at a steady rate during the workdays that the plant operates. The price of each chip is $ and the annual carrying cost is $ per unit per year. The ordering cost is $ Due to poor supplier delivery, the company has decided to maintain a safety stock SS of 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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