Exhibit $4.$ Basic EOQ. This type of problem can be recognized when annual demand $(D),$ ordering cost $(S),$ and holding or carrying cost per unit $(H)$ are given. Use Formula for economic order quantity, total cost, and $\frac{D}{Q}$ for number of orders a year.

A toy manufacturer uses approximately $45,000$ 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 $$4$ per chip, and ordering cost is $$100.$ Determine the following:

Refer to the Exhibit $4.$ Calculate the total cost $(5$ points$)$

a$)1500$

b$)3000$

c$)9000$

d$)6000$

e$)4500$