Question: Problem 12.26 Question Help M. P. VanOyen Manufacturing has gone out on bid for a regulator component. Expected demand is 675 units per month. The

Problem 12.26 Question Help M. P. VanOyen
Problem 12.26 Question Help M. P. VanOyen Manufacturing has gone out on bid for a regulator component. Expected demand is 675 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 $4. 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 a) What is the economic order quantity if price is not a consideration? 472 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. Baker Mfg Q A: Click to select your inswer(s) and then click Check Answer c A: S 1 pm remaining Clear All Flock QD fo esc 0 DOD F2 a $ 1 2 # 3 4 % 5

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