Raspberry Inc. uses 475,000 electronic chips each year in its production of cell phones. The cost of placing an order is $52.50. The cost of holding one unit of inventory for one year is $38.90. Currently, Raspberry places 250 orders of 1,900 electronic chips per year.

PART A Compute the annual ordering cost.

PART B Compute the annual carrying cost.

PART C Compute the cost of Raspberrys current inventory policy. Is this the minimum cost? Why or why not?

PART D Compute the economic order quantity.

PART E Compute the ordering, carrying, and total costs for the EOQ.

PART F How much money does using the EOQ policy save the company over the policy of purchasing 1,800 electronic chips per order?