The Schubert Company is a small manufacturing company that uses gear assemblies to produce four different models of mountain bikes. One of these gear assemblies, the “Smooth Shifter”, is used for the two most expensive of Schubert’s four models, and has an estimated annual demand of 300 units. Schubert estimates the cost to place an order is $40, and the holding cost for each assembly is $60 per year. The company operates 250 days per year. What is the economic order quantity for the Smooth Shifter?

Question

Answer

Less than or equal to 40 units

Answer

Greater than 40 units but less than or equal to 80 units

Answer

Greater than 120 units

Answer

Greater than 80 units but less than or equal to 120 units

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The Schubert Company is a small manufacturing company that uses gear assemblies ...

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