Question: Basic EOQ. This type of problem can be recognized when annual demand (D), ordering cost (S), and Problem 1 holding or carrying cost per unit

Basic EOQ. This type of problem can be recognized when annual demand (D), ordering cost (S), and Problem 1 holding or carrying cost per unit (H) are given. Use Formula 13-2 for order quantity, Formula 13-1 for total cost, and D/Q for number of orders a year. 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 ordering cost is $120. Determine the following: a. The optimal order quantity b. The number of workdays in an order cycle

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