Contemporary Engineering Economics (6th Edition)
6th Edition
ISBN: 9780134105598
Author: Chan S. Park
Publisher: PEARSON
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Question
Chapter 10, Problem 3ST
(a):
To determine
Calculate the after tax cash flow by unit production method.
(b):
To determine
Calculate the required volume.
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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
Emarpy Appliance produces all kinds of major appliances. Richard Feehan, the president of Emarpy, is concerned about the production policy for the company’s best-selling refrigerator. The demand for this has been relatively constant at about 8,000 units each year. The production capacity for this product is 200 units per day. Each time production starts, it costs the company $120 to move materials into place, reset the assembly line, and clean the equipment. The holding cost of a refrigerator is $50 per year. The current production plan calls for 400 refrigerators to be produced in each production run. Assume there are 250 working days per year. (a) What is the daily demand of this product? (b) If the company were to continue to produce 400 units each time production starts, how many days would production continue? (c) Under the current policy, how many production runs per year would be required? What would the annual setup cost be? (d) If the current policy continues, how many…
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?
Chapter 10 Solutions
Contemporary Engineering Economics (6th Edition)
Ch. 10 - Prob. 1PCh. 10 - Prob. 2PCh. 10 - Prob. 3PCh. 10 - Prob. 4PCh. 10 - Prob. 5PCh. 10 - Prob. 6PCh. 10 - Prob. 7PCh. 10 - Prob. 8PCh. 10 - Prob. 9PCh. 10 - Prob. 10P
Ch. 10 - Prob. 11PCh. 10 - Prob. 12PCh. 10 - Prob. 13PCh. 10 - Prob. 14PCh. 10 - Prob. 15PCh. 10 - Prob. 16PCh. 10 - Prob. 17PCh. 10 - Prob. 18PCh. 10 - Prob. 19PCh. 10 - Prob. 20PCh. 10 - Prob. 21PCh. 10 - Prob. 22PCh. 10 - Prob. 23PCh. 10 - Prob. 24PCh. 10 - Prob. 25PCh. 10 - Prob. 26PCh. 10 - Prob. 27PCh. 10 - Prob. 28PCh. 10 - Prob. 29PCh. 10 - Prob. 30PCh. 10 - Prob. 31PCh. 10 - Prob. 32PCh. 10 - Prob. 33PCh. 10 - Prob. 34PCh. 10 - Prob. 35PCh. 10 - Prob. 36PCh. 10 - Prob. 37PCh. 10 - Prob. 1STCh. 10 - Prob. 2STCh. 10 - Prob. 3STCh. 10 - Prob. 4STCh. 10 - Prob. 5ST
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