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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 ?$45?, and annual holding cost per unit is ?$7.
?a) What is the economic order quantity if price is not a? consideration? (in units, nearest whole number)
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Order Paper Nowb) which supplier, based on all options with regards to discounts, should be used?
c) what is the optimal order quantity and total annual cost of ordering, purchasing, and holding this compound?
d) the optimal order quantity is ______ with a total cost of $_____ (round to the nearest whole number)
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