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 thetable. Ordering cost is $45, and annual holding cost per unit is $5.Allen Mfg.Quantity1-499500-9991000+Unit Price$16.0015.5015.00Baker Mfg.Quantity1-399400-799800+a) What is the economic order quantity if price is not a consideration?whole number).Unit Price$16.1015.6015.10units (round your response to the nearest

Ans) EOQ = Sqrt (2*D*S/H) D = Annual Demand = 675*12 = 8100 S = $ 45 H = $ 5

Answered: M. P. VanOyen Manufacturing has gone…

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Chapter10: Introduction To Simulation Modeling

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