An electronics circuit supplier buys micro chips from a large manufacturer. Last year the company supplied 2000
Question:
An electronics circuit supplier buys micro chips from a large manufacturer. Last year the company supplied 2000 specialist D/35 chips to customers. The cost of placing an order is $50 and the annual holding cost is estimated to be $2.4 per chip. How much should the company order at a time and what is the total cost of carrying inventory of this product?
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To determine the optimal order quantity EOQ for the microchips and the associated total cost of carr...View the full answer
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Related Book For 
Operations Management
ISBN: 9780273708476
5th Edition
Authors: Nigel Slack, Stuart Chambers, Robert Johnston
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