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 ?$50?, and annual holding cost per unit is ?$4.
|
Allen Mfg.
|
Baker Mfg.
|
|
Quantity
|
Unit Price
|
Quantity
|
Unit Price
|
|
?1-499
|
?$16.00
|
?1-399
|
?$16.10
|
|
?500-999
|
15.50
|
?400-799
|
15.60
|
|
?1000+
|
15.00
|
?800+
|
15.10
|
?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 should be used?
c) what is the optimal order quantity?
d) total cost?