Which vendor should be selected

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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


Reference no: EM131356393

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