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

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

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

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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