Question: #30C) Which supplier do you recommend based on total annual cost? 30. My Kitchen Delights (MKD) is considering two new sup- pliers for the jars

#30C) Which supplier do you recommend based on total annual cost?

30. My Kitchen Delights (MKD) is considering two new sup- pliers 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: Supplier A Supplier B Quantity Unit Price Quantity Unit Price 1-2499 $3.00 11999 $3.50 2500-3499 2000-2999 3.15 35004999 2.80 3000-3999 2.85 5000 or more 2.70 4000-4999 2.75 5000 or more 2.60 2.901 (a) Determine the optimal order quantity when using Supplier A. (b) Determine the optimal order quantity when using Supplier B

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