Atoy 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 by hand:

a) the optimal order quantity

b) the number of orders to be placed in a year

c) how often orders need to be placed?

d) compute the total annual cost using your order size from question a.

a) 1,600

b) 20

C) every 18.25 days

d) 4,800 dollars

Explanation:

Where:

D = annual demand =32,000 units

S= setup cost = ordering cost =$120

H= Holding Cost =$3.00

EOQ = 1600

orders per year:

32,000 / 1,600 = 20 order per year

days between orders:

365 days per year / 20 order per year = 18.25 days

inventory cost:

average inventory: 1,600 / 2 = 800 units of inventory

800 x $3 holding cost + 20 orders at $120 each

2,400 + 2,400 = 4,800

answer: i'd say the answer is d because the information system is the human already doing the activity.

answer; i believe the correct answer is (tall); ///good luck