Answer:
1. 200 units
2. Greater than 30 times per year.
Explanation:
This is an incomplete question. The concluding part I.e question 2 reads:
2. How many times per year must Talbot order the XO-01 when orders are placed using the EOQ quantity.
1. The formulae for economic order quantity is;
EOQ = √ 2 × Annual demand × Ordering cost / Carrying cost
Where,
A = Annual demand = 8,000 units
O = Ordering cost = $50
C = Carrying cost = $20
Therefore,
EOQ = √ 2 × 8,000 × 50 / 20
EOQ = 200 units
The economic order quantity for the XO-01
2. To get the number of orders per year, we'll use the formula
Number of orders per year = D/Q
Where,
D = Annual demand = 8,000 units
Q = Economic order quantity = 200 units
= 8,000 / 200
= 40 orders.
It therefore means that Talbot must order the XO-01 greater than 30 times per year when orders are placed using the EOQ quantity.
