Score: 0 of 4 pts 7 of8 (5 complete) HW Score: 44.09%, 176 Question Problem 12.2

Question

Score: 0 of 4 pts 7 of8 (5 complete) HW Score: 44.09%, 176 Question Problem 12.24 M P VanOyen Manufacturing has gone out on bid for a requlator component Expected demand ts 700 units per month The item can be purchased from elther Alen Manufactuning or Bake Manufacturing Their price lists are shown in the table Ordering cost is $45, and annual holding cost per unit is $4 Baker Mig Allen Mfg UnitPrice --uantity?? Unit Price - Quantity 1-390 400-799 800 $16 10 15 60 15 10 $16 00 -499 00-999 1000- 15 50 15 00 What is the ecosomc order quartity id price is not a comsudoration? unts (roumd your rosponise to the nearest whole nomber)

Explanation / Answer

EOQ SQRT(2*Qty per year*cost per order/carrying cost per order) SQRT(2*700*12months*45/4) 435 units answer If any doubt please comment

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