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 2 Allen Mfg. Quantity 1-499 500-999 1000+ a) What is the economic order quantity if price is not a consideration? Baker Mfg. Quantity 1-399 400-799 800+ Unit Price $16.10 15.60 15.10 Unit Price $16.00 15.50 15.00 units (round your response to the nearest whole number).

Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
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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.
2
Allen Mfg.
Quantity
1-499
500-999
1000+
a) What is the economic order quantity if price is not a consideration?
Baker Mfg.
Unit Price
$16.00
15.50
15.00
Unit Price
$16.10
15.60
15.10
units (round your response to the nearest whole number).
Quantity
1-399
400-799
800+
Transcribed Image Text: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. 2 Allen Mfg. Quantity 1-499 500-999 1000+ a) What is the economic order quantity if price is not a consideration? Baker Mfg. Unit Price $16.00 15.50 15.00 Unit Price $16.10 15.60 15.10 units (round your response to the nearest whole number). Quantity 1-399 400-799 800+
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