Question: PLEASE ONLY ANSWER IF YOU 100% KNOW THE ANSWER. THANK YOU! 12.26 M. P. Vanoyen Manufacturing has gone out on bid for a regulator component.

PLEASE ONLY ANSWER IF YOU 100% KNOW THE ANSWER. THANK YOU!

12.26 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 S50, and annual holding cost per unit is $5 ALLEN MFG. BAKER MFG. QUANTITY UNIT PRICE QUANTITY UNIT PRICE 1-499 1-399 $16.00 $16.10 400-799 15.50 15.60 500-999 15.00 15.10 1,000+ 800+ a) What is the economic order quantity? b) Which supplier should be used? Why? c) What is the optimal order quantity and total annual cost of ordering, purchasing, and holding the component? Px

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