Uses gear assemblies to produce four different models

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The Burdell 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 Burdell's four models, and has an estimated annual demand of 300 units. Burdell 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. Use the information in Scenario 12.2. What are the total annual holding and ordering costs if Burdell orders using the EOQ quantity? Greater than $1,500 Greater than $1,000 but less than or equal to $1,500 Greater than $750 but less than or equal to $1,000 Less than or equal to $750.

Reference no: EM131758856

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