Kromberg uses electrical assemblies to produce an array of small appliances. One of its high cost / high volume assemblies, the YY-22, has an estimated annual demand of 8,000 units. Kromberg 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. How many times per year must Kromberg order the YY-22 when orders are placed using the EOQ quantity?

Question

Answer

Greater than 20 times but less than or equal to 30 times per year

Answer

Greater than 10 times but less than or equal to 20 times per year

Answer

Greater than 30 times per year

Answer

Less than 10 times per year

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Kromberg uses electrical assemblies to produce an array of small appliances. One...

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