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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,
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 7.0 units. Talbot estimates the cost to place an order is $1.7, and the holding cost for each assembly is $5.6 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? Answer: 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 6741 units. Talbot estimates the cost to place an order is $41, and the holding cost for each assembly is $17 per year. The company operates 287 days per year. Use the information in Scenario 9,3. The purchasing manager decides that, in order to save purchasing time, orders for the XO-01 will be placed every three months, or four times per year. How much does this approach cost Talbot in total annual holding and ordering costs (instead of Talbot ordering using the EOQ quantity)? Select one O a. 180.32 O b. 1700.00 OC. 69095250.00 O d. 1681.00 Scenario 9.5 Tom Bergman, owner and operator of the Earplug Superstore, is reviewing the costs associated with the store's best-selling hearing aid, the BZ15. The data available to Dr. Bergman concerning this device follow Demand = 25 units/week Order cost = $3/order Holding cost = $1.50/unit/year The Earplug Superstore operates 52 weeks a year Use the information in Scenario 9.5. If Tom decides to order at the economic order quantity, what is the sum of the annual ordering cost and holding cost? Select one A. less than or equal to $90 B. greater than $115 C. greater than $90 but less than or equal to $100 D greater than $100 but less than or equal to $115 Scenario 9.6 Consider the following data for an independent-demand item maintained by Angie Bonpensiero, the proprietor of a local auto repair shop: Weekly demand = 50 units Ordering cost = $8/order Holding cost = $4/unit/year Weeks in a year = 50 Use the information in Scenario 9.6. If Bonpensiero uses the EOQ model, how frequently must she place orders for this item? Select one o A. every 2 weeks B. every week O C. every 3 weeks O D. every 4 weeks
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