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Business, 08.11.2019 04:31 maddy1276

Atoy manufacturer uses approximately 32,000 silicon chips annually. the chips are used at a steady rate during the 240 days a year that the plant operates. annual holding cost is $3 per chip and ordering cost is $120. determine by hand:

a) the optimal order quantity

b) the number of orders to be placed in a year

c) how often orders need to be placed?

d) compute the total annual cost using your order size from question a.

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