Question: answer all questions using the first table please M. P. VanOyen Manufacturing has gone out on bid for a regulator component. Expected demand is 725

answer all questions using the first table please M. P. VanOyen Manufacturinghas gone out on bid for a regulator component. Expected demand is

answer all questions using the first table please

M. P. VanOyen Manufacturing has gone out on bid for a regulator component. Expected demand is 725 units per month. The item can be purchased from either Allen Manufacturing or Baker Manufacturing. Their price lists are shown in the table. Ordering cost is $45, and annual holding cost per unit is $3. a) What is the economic order quantity if price is not a consideration? units (round your response to the nearest whole number). The total annual inventory cost can be calculated as follows: Totalcost=Setupcost+Holdingcost+Productcost, or TC=QDS+2QH+PD, where Q= Quantity ordered, D= Annual demand in units, S= Ordering or setup cost per order or per setup, P= Price per unit, H= Holding cost per unit per year. Assuming the order size is the EOQ, M. P. VanOyen should purchase the components from Belkerturing . What is the total cost from Baker Mfg. assuming the order size is the EOQ? \$ What is the total cost from Baker Mfg. assuming the order size is 800 units? \$ What is the total cost from Allen Mfg. assuming the order size is 500 units? $ What is the total cost from Allen Mfg. assuming the order size is 1,000 units? $ Using your responses above, which manufacturer should M. P. VanOyen order the components from? c) What is the optimal order quantity and total annual cost of ordering, purchasing, and holding the component? You determined above that the optimal order quantity is (round your response to the nearest whole number). (round your response to the nearest whole number). (round your response to the nearest whole number). (round your response to the nearest whole number)

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related General Management Questions!