My Kitchen Delights (MKD) is considering two new suppliers for the jars used in the production process. The quality at both suppliers is equal. Assume that the annual holding cost is 30 percent of the unit price. Monthly demand averages 20,000 jars. Ordering cost with these two suppliers is $30 per order. The price lists for the suppliers are as follows:

(a) Determine the optimal order quantity when using Supplier A.
(b) Determine the optimal order quantity when using Supplier B.
(c) Given MKD’s lack of space, which supplier do you recommend be used? Justify youranswer.

Supplier A Supplier B Quantit 1-2499 2500-3499 3500-4999 5000 or mo Unit Price $3.00 2.90 2.80 2.70 Quantit 1-1999 2000-2999 3000-3999 4000-4999 5000 or more Unit Price S3.50 3.15 2.85 2.75 2.60 re