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. 1. D is ______________, S is ___________________, and H is ______________

2. Calculate EOQ:

3. The number of workdays in an order cycle

(Q/D x # work days):

4. How many times per year does the store reorder? D/Q

5. What is total cost if EOQ is ordered?

6. Holding Cost is now $5 per chip. Calculate a new EOQ and new total annual costs