### Which vendor should be selected

Assignment Help Operation Management
##### Reference no: EM131356393

Chris Sandvig Irrigation, Inc., has summarized the price list from four potential suppliers of an underground control valve. See the accompanying table. Annual usage is 2,400 valves; order cost is \$10 per order; and annual inventory holding costs are \$3.33 per unit.

Which vendor should be selected and what order quantity is best if Sandvig Irrigation wants to minimize total cost?

 Vendor A Vendor B Quantity Price Quantity Price 1-49 \$35.00 1-74 \$34.75 50-74 34.75 75-149 34.00 75-149 33.55 150-299 32.80 150-299 32.35 300-499 31.60 300-499 31.15 500+ 30.50 500+ 30.75 Vendor C Vendor D Quantity Price Quantity Price 1-99 \$34.50 1-199 \$34.25 100-199 33.75 200-399 33.00 200-399 32.50 400+ 31.00 400+ 31.10

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