Question: please explain this M. P. VanOyen Manufacturing has gone out on bid for a regutator component. Expected demand is 700 units per month. The nem

please explain this
 please explain this M. P. VanOyen Manufacturing has gone out on

M. P. VanOyen Manufacturing has gone out on bid for a regutator component. Expected demand is 700 units per month. The nem 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 $3. a) What is the economic order quantity if price is not a consideration? units (round your response to the nearest whole number). b) Which supplier, based on all options with regard to discounts, should be used? 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)

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!