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MCS,PHD
Argosy University/ Phoniex University/
Nov-2005 - Oct-2011
Professor
Phoniex University
Oct-2001 - Nov-2016
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.
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
a. The optimal order quantity.
b. The number of workdays in an order cycle.
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