M. P. VanOyen Manufacturing has gone out on bid for a regulator component. Expected demand is 675 units per mon 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 $5. Allen Mfg. Quantity 1-499 500-999 1000+ Unit Price $16.00 15.50 15.00 Baker Mfg. Quantity 1-399 400-799 800+ a) What is the economic order quantity if price is not a consideration? whole number). Unit Price $16.10 15.60 15.10 units (round your response to the nearest
M. P. VanOyen Manufacturing has gone out on bid for a regulator component. Expected demand is 675 units per mon 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 $5. Allen Mfg. Quantity 1-499 500-999 1000+ Unit Price $16.00 15.50 15.00 Baker Mfg. Quantity 1-399 400-799 800+ a) What is the economic order quantity if price is not a consideration? whole number). Unit Price $16.10 15.60 15.10 units (round your response to the nearest
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
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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 $5.
| Allen Mfg. | | Baker Mfg. | |
|------------|--------|------------|--------|
| Quantity | Unit Price | Quantity | Unit Price |
| 1-499 | $16.00 | 1-399 | $16.10 |
| 500-999 | $15.50 | 400-799 | $15.60 |
| 1000+ | $15.00 | 800+ | $15.10 |
a) What is the economic order quantity if price is not a consideration? [ ] units (round your response to the nearest whole number).
**Explanation:**
- The table provides a comparison of unit prices for different purchase quantities from two manufacturers: Allen Manufacturing and Baker Manufacturing.
- Allen Manufacturing offers three price tiers: $16.00 for 1-499 units, $15.50 for 500-999 units, and $15.00 for 1000 or more units.
- Baker Manufacturing also provides three price tiers: $16.10 for 1-399 units, $15.60 for 400-799 units, and $15.10 for 800 or more units.
- The problem requires calculating the economic order quantity without considering the price differences.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F990e2519-8241-488a-b2ee-5f9ae2efd0c7%2F165454cc-fa96-4d79-9fda-b474e42b661d%2Fq5r38pa_processed.png&w=3840&q=75)
Transcribed Image Text: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 $5.
| Allen Mfg. | | Baker Mfg. | |
|------------|--------|------------|--------|
| Quantity | Unit Price | Quantity | Unit Price |
| 1-499 | $16.00 | 1-399 | $16.10 |
| 500-999 | $15.50 | 400-799 | $15.60 |
| 1000+ | $15.00 | 800+ | $15.10 |
a) What is the economic order quantity if price is not a consideration? [ ] units (round your response to the nearest whole number).
**Explanation:**
- The table provides a comparison of unit prices for different purchase quantities from two manufacturers: Allen Manufacturing and Baker Manufacturing.
- Allen Manufacturing offers three price tiers: $16.00 for 1-499 units, $15.50 for 500-999 units, and $15.00 for 1000 or more units.
- Baker Manufacturing also provides three price tiers: $16.10 for 1-399 units, $15.60 for 400-799 units, and $15.10 for 800 or more units.
- The problem requires calculating the economic order quantity without considering the price differences.
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