An electronics manufacturer uses 10,000 microchips per year. The cost to place a single order is $50. The annual holding cost per microchip is$2. Calculate the Economic Order Quantity (EOQ) to minimize total inventory costs.

Using the EOQ calculated in Example 1 (707 units), determine how many orders the manufacturer will place per year and the total annual inventory cost (excluding the cost of the chips themselves).

A company is launching two new products: Product A is a highly customized, luxury yacht built to order. Product B is a standard, 3D-printed plastic phone case expected to sell millions of units. Recommend the appropriate production system for each.