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).

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).

Purchasing and Supply Chain Management

6th Edition

ISBN:9781285869681

Author:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson

Publisher:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson

Chapter16: Lean Supply Chain Management

Section: Chapter Questions

Problem 10DQ: The chapter presented various approaches for the control of inventory investment. Discuss three...

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