A company will begin stocking remote control devices. Expected monthly demand is 700 units. The controllers can be purchased from either supplier A or supplier B or supplier C. Their price lists are as follows:

SUPPLIER A . SUPPLIER B . SUPPLIER C

Quantity Unit Price Quantity Unit Price Quantity Unit Price

1-199 $14.00 1-149 $14.50 1-124 $15.00

200-399 13.50 150-299 14.00 125-399 14.50

400-599 13.00 300-399 13.50 400-499 14.00

600+ 12.50 400+ 13.00 500+ 12.00

Ordering cost is $30 and annual holding cost is 20% of unit price per unit.

(a) What are the optimal total annual costs in the case of Supplier A?

(b) What are the optimal total annual costs in the case of Supplier B?

(c) What are the optimal total annual costs in the case of Supplier C?

(d ) What should be the optimal order quantity and which supplier must be chosen?