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

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)
14th Edition
ISBN:9781305506381
Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Chapter9: Applications Of Cost Theory
Section: Chapter Questions
Problem 5E
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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.
Transcribed Image Text: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.
2. How many times per year must Talbot order the XO-01 when orders are placed using
the EOQ quantity?
Transcribed Image Text:2. How many times per year must Talbot order the XO-01 when orders are placed using the EOQ quantity?
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