Use the data from problem 12 BELOW. If the lead time for placingan order is 5 days, and Technology Corporation holds a safety stockequal to a 30-day supply of chips, then at what inventory levelshould an order be placed? Enter your answer rounded to two decimalplaces. For example, if your answer is 12.345 then enter as 12.35in the answer box.
Q12. Technology Corporation expects to order 126,000 memorychips for inventory during the coming year, and it will use thisinventory at a constant rate. Fixed ordering costs are $200 perorder; the purchase price per chip is $25; and the firm’s inventorycarrying costs is equal to 20 percent of the purchase price.(Assume a 360-day year.) What is the economic ordering quantity forchips? Enter your answer rounded to two decimal places. Forexample, if your answer is 12.345 then enter as 12.35 in the answerbox.
