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Sunflower Corp. plans to order 126,000 calculator batteries for inventory in the coming year. This inventory will be used at a constant pace. The fixed

Sunflower Corp. plans to order 126,000 calculator batteries for inventory in the coming year. This inventory will be used at a constant pace. The fixed ordering costs are P200 per order, the selling price per chip is P25. According to the record, firm's inventory carrying costs are 20% of the purchase price. Assume 360 days in a year. 

a. What is the economic ordering quantity for batteries? 

b. If Sunflower holds a safety stock equal to a 30-day supply of batteries, what is its average inventory level? 

c. Assume that Sunflower holds a safety stock equal to a 30 day supply of batteries. What is the maximum amount of inventory that will have on hand at any time, that is, what will be the inventory level right after a delivery is made?

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