Scenario 9.3 The Talbot Company Uses Electrical Assemblies to Produce an Array

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. How many times per year must Talbot order the XO-01 when orders are placed using the EOQ quantity?

A) less than 10 times per year
B) greater than 10 times but less than or equal to 20 times per year
C) greater than 20 times but less than or equal to 30 times per year
D) greater than 30 times per year

Correct Answer:

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