1. A toy manufacturer uses approximately 32,000 siliconchips annually. The chips are used at a steady rate during the 240days a year that the plant operates. Annual holding cost is $3 perchip, and ordering cost is $120. Determine thefollowing:
a) The optimal order quantity (EOQ)
b) The number of workdays in an order cycle
2. Determine an A-B-C classification for the followingitems:
Item | Unit Cost | Usage |
K34 | $10 | 200 |
K35 | 25 | 600 |
K36 | 36 | 150 |
M10 | 16 | 25 |
M20 | 20 | 80 |
Z45 | 80 | 200 |
F14 | 20 | 300 |
F95 | 30 | 800 |
F99 | 20 | 60 |
D45 | 10 | 550 |
D48 | 12 | 90 |
D52 | 15 | 110 |
D57 | 40 | 120 |
N08 | 30 | 40 |
P05 | 16 | 500 |
P09 | 10 | 30 |