The Talbot Company uses electrical assemblies to produce an aray 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. 1. Use the information in the scenario above. What is the economic order quantity for the xo-01?

The Talbot Company uses electrical assemblies to produce an aray 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. 1. Use the information in the scenario above. What is the economic order quantity for the xo-01?

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

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.
1. Use the information in the scenario above. What is the economic order quantity for the
XO-01?

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