What is the optimal order quantity

Assignment Help Operation Management
Reference no: EM131855100

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 ?$4.

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).

b) which supplier should be used?

c) what is the optimal order quantity?

d) total cost?

Reference no: EM131855100

Questions Cloud

Examine crucial references for the original : Examine crucial references for the original and/or current work of Jean Watson and other authors writing about the caring theory.
Post-operative vascular surgery : A 25-year-old Arab American man is one day post-operative following vascular surgery. There have been no post-surgical complications
Define a notion of a value of control : In the same spirit, define a notion of a value of control, which is the gain to agent if she is allowed to intervene at a chance variable X and set its value.
What is the student nurse responsibility to the patient : What is the student nurse's responsibility to the patient regarding patient education?
What is the optimal order quantity : M. P. VanOyen Manufacturing has gone out on bid for a regulator component. Expected demand is 675 units per month.
How many units the company can sell : A company manufactures a product in the U.S and sell it in England. The unit cost of manufacturing is $50. The current exchange rate (dollars per pound).
How does dr berwick aphorism relate to ebp : How does Dr. Berwick's aphorism relate to EBP? What does that aphorism mean to you in your clinical practice?
Business research report - Business Advertisement Processes : Business Research Report - Topic: BUSINESS ADVERTISEMENT PROCESSES. Describe objectively what happened in the learning process
What is the expected utility for a given action a : What is the expected utility for a given action a, taking an expectation both over outcomes of pa, and over possible utility functions that agent might have?

Reviews

Write a Review

Operation Management Questions & Answers

  Compensation for paid time off treated with respect to taxes

Would it be possible to make certain "minority" groups the focus of society's problems? How is compensation for paid time off treated with respect to taxes? List three traditional coverages of basic medical expense plans and briefly explain what each..

  Discuss reasons why firms would want to carry inventories

Inventory Discuss the reasons why firms would want to carry inventories. What methods can be used to determine the optimal quantity of inventory for a firm? What factors might lead a firm in a particular industry to carry larger or smaller inventorie..

  Determining how many reservoir capacitors

Gulf Coast Electronics is ready to award contracts to suppliers for providing reservoir capacitors for use in its electronic devices. Formulate and solve a linear program for determining how many reservoir capacitors should be ordered from each suppl..

  Control charts is straightforward in manufacturing processes

The application of control charts is straightforward in manufacturing processes where you have tangible goods with physical characteristics you can easily measure on a numerical scale. Quality control is also important in service businesses, but you ..

  Two month lead time from initiation to receipt of order

Annual demand for number 2 pencil at the campus store is normally distributed with mean 1000 and standard deviation 250. The store purchases the pencils for 6 cents each and sells them for 20 cents each. There is a two month lead time from the initia..

  Define the term corporation by estoppel

Define the term de facto corporation and list the 3 terms that must exist in order for it to exist. Define the term corporation by estoppel.

  The auditing profession has struggled with materiality

The auditing profession has struggled with materiality for a long time. Do you think the auditor is better off if a specific percentage for materiality is specified in auditing standards? Or is it better left to the auditor's judgment? What are the p..

  Responsible for approving the master plan

Keep in mind who is responsible for approving the master plan, the objectives, elements and the different plans

  What other considerations should monarch associates

Monarch Associates, a U.S. computer parts manufacturer, entered into a joint venture with a Russian computer technology company, Vladir Unlimited.  What laws govern arbitration in the U.S.? In Russia? In your opinion, in which country should the disp..

  Describe and explain the us economy business cycle

describe and explain the us economy business cycle. what are the key economic indicators of the us economy? why are they important to consider.

  Improving your negotiation skills

Based on the information in Lewicki Ch.3, describe in your own words the difference between a negotiator’s “position”, versus their underlying interests/needs. Based on the folder entitled “Improving Your Negotiation Skills”… Please review the four b..

  Marketing trends and have social media accounts

State why it is important for companies to keep current with the marketing trends and have social media accounts.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd