2.
A toy manufacturer uses approximately 32,000 slicon 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 slicon chip. The optimal ordering quantity is 1600 chips per order. What is the total annual holding (carrying) cost under the optimal inventory management policy?
Select one:
a. $2400
b. $3
c. 3600
d. $480,000