Question

the universal computer company uses a newly developed a1 chip in the manufacturer of their tablet computers. the estimated annual demand for this chip is 12,000 units. it is estimated that the cost to place an order is $75, and the holding cost for each chip is $20 per year. the company operates 320 days per year.

Answer 1

The A1 chip's economic order quantity is between 250 and 280 units.

What is economic order quantity?

Economic Order Quantity (EOQ), also known as Economic Buying Quantity (EPQ), is the order quantity in inventory management that minimizes overall holding costs and ordering expenses. It is one of the most ancient traditional production scheduling models. EOQ applies only when a product's demand is constant throughout the year and each new order is supplied in full when inventory approaches zero. Each order has a set cost, regardless of the number of units purchased; every order is presumed to contain only one unit.

D = 12000 x 320/365

H = 20

S = 75

EOQ = between 250 and 280 units

To learn more about economic order quantity, click

https://brainly.com/question/16986815

#SPJ4