6. (Class Activity) A manufacturing firm has gone out on bid to procure a component. Expected demand is 700 units per month. The item can be purchased from either Vendor A or Vendor B. Their price lists are shown in the table. Ordering cost is $50, and annual holding cost per unit is 30% of the item's value. Quantity 1-499 500-999 1000+ Vendor A Unit Price $16.00 15.50 15.00 Quantity 1-399 400-799 800+ Vendor B Unit Price $16.10 15.60 15.10 a) Calculate the economic order quantity. b) From which vendor is the optimal order quantity and what is the total annual inventory cost?

6. (Class Activity) A manufacturing firm has gone out on bid to procure a component. Expected demand is 700 units per month. The item can be purchased from either Vendor A or Vendor B. Their price lists are shown in the table. Ordering cost is $50, and annual holding cost per unit is 30% of the item's value. Quantity 1-499 500-999 1000+ Vendor A Unit Price $16.00 15.50 15.00 Quantity 1-399 400-799 800+ Vendor B Unit Price $16.10 15.60 15.10 a) Calculate the economic order quantity. b) From which vendor is the optimal order quantity and what is the total annual inventory cost?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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The following are the P/E ratios (price of stock divided by projected earnings per share) for 20 banks. 50, 19, 22, 21, 25, 18, 31, 21, 19, 14, 15, 18, 17, 34, 29, 23, 14, 18, 22, 22 Send data to calculator Find 20" and 75" percentiles for these ratios. (a) The 20th percentile: (b) The 75th percentile:| Continue Cip 40 4- %23 %24 3. 6. 7. R. 00 %24
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