Question: 1) Determine the optimal order quantity when using Supplier A, in jars. - Your answer is partially correct. My Kitchen Delights (MKD) is considering two

1) Determine the optimal order quantity when using Supplier A, in jars.
- Your answer is partially correct. 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 19,800 jars. Ordering cost with these two suppliers is $28 per order. The price lists for the suppliers are as follows: Supplier B Quantity Unit Price Supplier A Unit Quantity Price 1-2499 $3.30 2500-3499 3.20 3500-4999 3.10 5000 or more 3.00 1-1999 2000-2999 3000-3999 4000-4999 $3.40 3.05 2.75 2.65 2.50 5000 or more (Round your answers to 1 decimal place,e.g., 4500.6 and the tolerance is +/-0.1.) (a) Determine the optimal order quantity when using Supplier A. 3979.9 jars (b) Determine the optimal order quantity when using Supplier B. 4359.8 jars (c) Given MKD's lack of space, which supplier do you recommend be used? SupplierStep by Step Solution
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