Determine the optimal order quantity

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Reference no: EM132223031

Toy’s World, 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. The order is delivered to the company by in three days after an order is called in. Annual holding cost is $3 per chip, and ordering cost is $120. Determine the following (15%): a. The optimal order quantity(EOQ) b. The number of workdays in an order cycle c. Compute the ROP (reorder point)

Reference no: EM132223031

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