Question: A small computer manufacturer uses 32,000 computer chips annually. The chips are used at a steady rate during the 8 hours operations per day, 250

A small computer manufacturer uses 32,000 computer chips annually. The chips are used at a steady rate during the 8 hours operations per day, 250 days a year. Annual holding cost is 80 cents per chip, and ordering cost is $24 per order. An order arrives after three working days of order placement. Answer the following questions:

Determine an order quantity of the chips that minimizes total cost. (8 points)
Calculate annual ordering cost at EOQ. (8 points)
Find the reorder point. (8 points)
Find the optimum time interval between orders. (8 points)

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related General Management Questions!

a toy manufacturer uses approximately 45000 silicon chips annually. The chips are used at a steady rate during 350wokring days per year. The annual holding cost is $4 per chip, ordering cost if $130...

pls answer the 3 q 3 points Save Answe Aloy manufacturer uses approximately 50,000 Silicon chips annually. The chips are used at a steady rate during 340 working days per year. The annual holding...

One item a computer store sells is supplied by a vendor who handles only that item. Demand for that item recently changed, and the store manager must determine when to replenish it. The manager wants...

Help me please. Something about P and Q model and particularly number 3 to the last problem. Thank you so much! Preparing an order and receiving a shipment of sugar involves a cost of P 135. Annual...

1. A toy 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...

Please answer and explain the two questions. Thank you! A toy manufacturer uses approximately 32,000 silicon chips annually. The chips are used at a steady rate during the 240 days a year that the...

A produce distributor uses 623 packing crates a month, which it purchases at a cost of $10 each. The manager has assigned an annual carrying cost of 35 percent of the purchase price per crate....

Question 32 4 points Save Answer A toy manufacturer uses approximately 50,000 silicon chips annually. The chips are used at a steady rate during 340 working days per year. The annual holding cost is...

> Moving to another gestion will save this response 3 points Save Answer Question 31 A toy manufacturer uses approximately 50,000 silicon chips annually. The chips are used at a steady rate during...

Financial statements are now beyond the comprehension of the average person. Many of the accounting terms and methods of accounting used are simply too complex to understand just from reading the...

What is coherence, and how is it achieved?

PUB 3 7 2 1 : PROJECT BASED LEARNING PROJECTS In your Portfolio of Evidence ( PoE ) , you are required to do a research project following the steps within project cycle and peer learning. The...

As the manager of Smith Construction, you need to make a decision on the number of homes to build in a new residential area where you are the only builder. Unfortunately, you must build the homes...