21 C D E G H 1 K L M N B 1500 30 Supplier Section A 1 Buyer's demand 2 Accepteble # of defective items 3 24 5 Price 5 Capacity Defective Percentage Supplier 1 Supplier 2 Supplier 3 Supplier 4 $ 10.00 $ 11.00 $ 12.00 $ 13.00 1000 1000 1000 1000 0.02 0.015 0.01 0.005 Order quantity from the supploers 0 1 In this problem, we assume that a buyer is going to buy a single item from four suppliers to meet its demand that is 1500 units. The suppliers offer different wholesale prices that are $10, $11, $12 and $13, respectively. They also produce defective items and the percentage is 2% for the first supplier, 1.5% for the second supplier, 1% for the third supplier, and 0.5% for the forth supplier. Production capacity for all the 5 suppliers is 1000 units. 6 Assume that the buyer wants to minimize its purchasing cost. Use Solver to solve the problem for this case: acceptable number of defective 7 items is less than 30 units. 8 9 o 2