M. P. VanOyen Manufacturing has gone out on bid for a regulatorcomponent. Expected demand is
725725
units per month. The item can be purchased from either AllenManufacturing or Baker Manufacturing. Their price lists are shownin the table. Ordering cost is
?$5555?,
and annual holding cost per unit is
?$55.
??????????????????????????????????????????????????????????????????????????????????????
??????????????????????????????????????????????????
Allen Mfg. | Baker Mfg. |
Quantity | Unit Price | Quantity | Unit Price |
?1-499 | ?$16.00?? | ?1-399 | ?$16.10?? |
?500-999 | 15.50 | ?400-799 | 15.60 |
?1000+ | 15.00 | ?800+ | 15.10 |
?a) What is the economic order quantity if price is not a?consideration?
437437
units ?(round your response to the nearest whole?number).
?b) Which? supplier, based on all options with regard to?discounts, should be? used?
Allen Mfg.
?c) What is the optimal order quantity and total annual cost of?ordering, purchasing, and holding the? component?
The optimal order quantity is
?????
with a total cost of
???
?(round your responses to the nearest whole?number).
