Question: Please answer A-D, thank you :) B) Which supplier should be used? Allen V. Baker C) What is the total cost from Baker assuming the
Please answer A-D, thank you :)
B) Which supplier should be used? Allen V. Baker
C) What is the total cost from Baker assuming the order size is EOQ?
D) What is the total cost from Baker assuming the order size is 800 units?
M. P. VanOyen Manufacturing has gone out on bid for a regulator component. Expected demand is 700 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 $55, and annual holding cost per unit is $6. Allen Mfg. Quantity Unit Price 1-499 $16.00 500-999 15.50 1000+ 15.00 Baker Mfg. Quantity Unit Price 1-399 $16.10 400-799 15.60 800+ 15.10 units (round your response to the a) What is the economic order quantity if price is not a consideration? nearest whole number)Step by Step Solution
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