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(Steps Shown) Logan manufacturing has gone out on bid for a regular component. Expected demand is 700 units per month. The item can be purchased from either

Question: Logan manufacturing has gone out on bid for a regular component. Expected demand is 700 units per month. The item can be purchased from either Allen Manufacturing or Baker Manufacturing. Their price lists are shown below. Ordering cost is $50, and annual holding cost per unit is $5.

What is the optimal order quantity? Which supplier should be used? Why?

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Solution: The downloadable solution consists of 3 pages
Deliverable: Word Document

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(Steps Shown) Logan manufacturing has gone out on bid for a regular component. Expected demand is 700 units per month. The item can be purchased from either

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