Sun International is a fictional major distributor of hand towels and wash clothes to hotel chains and restaurants. To minimize procurement costs, the company is planning to switch to a supplier overseas. The company has narrowed its choice to two suppliers€” one in India and the other in the Philippines. The quantity discount€“price schedules offered by both suppliers are given in the following table:

The annual demand for hand towels and wash clothes is 300,000 units. The cost of placing an order is $320, and it is independent of the supplier chosen or order quantity. The carrying cost is 22% of the item price. Which supplier should Sun International choose to minimize the total costs associated with procurement of these items?

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Indian Supplier Philippines Supplier Price per unit (in U.S. dollars) Price per unit (in U.S. dollars) Quantity Ordered Quantity Ordered 0 to 3,999 O to 3,999 35.00 37.00 4,000 to 7,999 4,000 to 7,999 32.00 34.00 8,000 to 11,999 27.00 8,000 to 11,999 26.00 12,000+ 22.00 12,000+ 20.00