Scenario 9.3 The Talbot Company uses electrical assemblies to produce an array of small appliances. One of its high cost /high volume assemblies, the XO-01, has an estimated annual demand of 8,000 units. Talbot estimates the cost to place an order is $50, and the holding cost for each assembly is $20 per year. The company operates 250 days per year. Use the information in Scenario 9.3. What is the economic order quantity for the XO-01? O greater than 180 units but less than or equal to 250 units O greater than 250 units O less than or equal to 100 units O greater than 100 units but less than or equal to 180 units

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Chapter1: Making Economics Decisions
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Scenario 9.3
The Talbot Company uses electrical assemblies to produce an array of small appliances. One of its high cost /high volume
assemblies, the XO-01, has an estimated annual demand of 8,000 units. Talbot estimates the cost to place an order is $50, and the
holding cost for each assembly is $20 per year. The company operates 250 days per year.
Use the information in Scenario 9.3. What is the economic order quantity for the XO-01?
O greater than 180 units but less than or equal to 250 units
O greater than 250 units
O less than or equal to 100 units
O greater than 100 units but less than or equal to 180 units
Transcribed Image Text:Scenario 9.3 The Talbot Company uses electrical assemblies to produce an array of small appliances. One of its high cost /high volume assemblies, the XO-01, has an estimated annual demand of 8,000 units. Talbot estimates the cost to place an order is $50, and the holding cost for each assembly is $20 per year. The company operates 250 days per year. Use the information in Scenario 9.3. What is the economic order quantity for the XO-01? O greater than 180 units but less than or equal to 250 units O greater than 250 units O less than or equal to 100 units O greater than 100 units but less than or equal to 180 units
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