Basic EOQ. This type of problem can be recognized when annual demand (D), ordering cost (S), andholding or carrying cost per unit (H) are given. Use Formula 13–2 for order quantity, Formula 13–1for total cost, and D/Q for number of orders a year.A toy manufacturer uses approximately 32,000 silicon chips annually. The chips are used at asteady rate during the 240 days a year that the plant operates. Annual holding cost is $3 per chip, andordering cost is $120. Determine the following:a. The optimal order quantityb. The number of workdays in an order cycle

Practical Management Science
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ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
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Basic EOQ. This type of problem can be recognized when annual demand (D), ordering cost (S), and
holding or carrying cost per unit (H) are given. Use Formula 13–2 for order quantity, Formula 13–1
for total cost, and D/Q for number of orders a year.
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. Determine the following:
a. The optimal order quantity
b. The number of workdays in an order cycle

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