M p vanoyen manufacturing has gone out on bid for a, Ask an Expert

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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 ?$50, and annual holding cost per unit is $5.

Allen Mfg. Price Range Lower Quantity Upper Quantity Unit Price

1-499 $16.00

500-999 $15.50

1000- 999999 $15.00

Baker Mfg. Price Range Lower Quantity Upper Quantity Unit Price

1-399 $16.10

400 -799 $15.60

800- 999999 $15.10

a) What is the economic order quantity if price is not a? consideration?

nothing

units

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Operation Management, Management Studies

Category:- Operation Management
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