The Talbot Company uses electrical assemblies to produce an array of small appliances. One ofits high cost/high volume assemblies, the XO-01, has an estimated annual demand of 8,000units. 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.14) What is the economic order quantity for the XO-01?A) less than or equal to 100 unitsB) greater than 100 units but less than or equal to 180 unitsC) greater than 180 units but less than or equal to 250 unitsD) greater than 250 units15) What is the annual inventory holding cost if Talbot orders using the EOQ quantity?A) less than or equal to $1,500B) greater than $1,500 but less than or equal to $4,000C) greater than $4,000 but less than or equal to $6,500D) greater than $6,500

Approach to solving the question: Detailed explanation:14.) To find the Economic Order Quantity…

Answered: The Talbot Company uses electrical…

Understanding Business

12th Edition

ISBN:9781259929434

Author:William Nickels

Publisher:William Nickels

Chapter1: Taking Risks And Making Profits Within The Dynamic Business Environment

Section: Chapter Questions

Problem 1CE

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William Beville's computer training school, in Richmond, stocks workbooks with the following characteristics: a) The EOQ for the workbooks is (round your response to the nearest whole number). b) What are the annual holding costs for the workbooks? $ (round your response to the nearest whole number). c) What are the annual ordering costs? $, (round your response to the nearest whole number). William Beville's computer training school, in Richmond, stocks workbooks with the following characteristics: Demand D Ordering cost S Holding cost H 20,000 units/year $26/order $4/unit/year a) The EOQ for the workbooks is (round your response to the nearest whole number). b) What are the annual holding costs for the workbooks? $☐ (round your response to the nearest whole number). c) What are the annual ordering costs? $ (round your response to the nearest whole number).
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Wang Distributors has an annual demand for an airport metal detector of 1,421 units. The regular cost of a detector for Wang is $363. The storage cost is estimated to be 20% of the unit cost, and the cost of placing each order is $25. If Mr. Wang, the owner, orders quantities of 300 or more, the cost of one detector will be $365. Wang Distributors has a year of 250 business days. When a new order of detectors is made, the supplier takes 3 days to deliver it. Show your work. 1. What inventory management model should we use to solve this problem? Model Economic Quantity to Produce Model Economic Quantity to Order Model to handle dependent demand Model for discount purchases 2. What is the optimal quantity of detectors that should be made in each order if purchased at full price? Response 3. What is the optimal quantity of detectors that should be made in each order if purchased at a discount price? Response 4. After validating the quantity of detectors that should be made in each order…

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