Question: 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

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:

A company will begin stocking remote control devices. Expected monthly demand is

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?

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

SUPPUIERA SUPPLIER B SUPPLIER C

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