Question: A small computer manufacturer uses 24000 conputer chips annually. The chips are used at a steady rate during the 258 days a year that the

A small computer manufacturer uses 24000 conputer chips annually. The chips are used at a steady rate during the 258 days a year that the plant operates. Annual holding cost is 50 cents per chip, and ordering cost is $26 per order. Determine:

a. The economic order quantity.

b. What is the total annual inventory cost id EOQ units are ordered each time?

c. The number of workdays in an order cycle.

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