What order quantity is optimal if the intent is to minimize

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A company will begin stocking remote control devices. Expected monthly demand is 800 units. The controllers can be purchased from either supplier A or supplier B. Their price lists are as follows: SUPPLIER A SUPPLIER B Quantity Unit Price Quantity Unit Price 1–199 $14.00 1–149 $14.10 200–499 13.80 150–349 13.90 500 + 13.60 350 + 13.70 Ordering cost is $40 and annual holding cost is 25 percent of unit price per unit. a-1. Which supplier should be used? Supplier A Supplier B a-2. What order quantity is optimal if the intent is to minimize total annual costs? 200 300 500 350 150 1

Reference no: EM13968149

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