What is the total holding cost per year

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Reference no: EM13224668

A toy manufacturer uses approximately 32,000 slicon 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 slicon chip. The optimal ordering quantity is 1600 chips per order. What is the total holding (carrying) cost per year under the optimal inventory management policy?

Select one:
a. $3
b. $480,000
c. $2400
d. 3600

Reference no: EM13224668

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