A drone 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 the following a) The optimal or economic order quantity b) The number ...

a To calculate the Economic Order Quantity EOQ Annual demand 320 ...

A drone manufacturer uses approximately 32,000 silicon chips annually. The chips are used at a steady rate

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A drone 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 the following:
a) The optimal or economic order quantity.
b) The number of workdays in an order cycle.