Q. The Talbot Organization 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 also the holding cost for each assembly is $20 per yr. The organization operates 250 days per yr.
Illustrate what is the economic order quantity for the XO-01?