Question
A drone manufacturer uses approximately 32,000 silicon chips annually. The chips are used at a steady rate during the 240 days a year that the
- A drone 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 the following:
- a) The optimal or economic order quantity.
- b) The number of workdays in an order cycle.
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