Question: A company will begin stocking remote control devices. Expected monthly demand is 800 units. The controllers can be purchased from either supplier A or supplier

 A company will begin stocking remote control devices. Expected monthly demandis 800 units. The controllers can be purchased from either supplier A

A company will begin stocking remote control devices. Expected monthly demand is 800 units. The controllers can be purchased from either supplier A or supplier B. Their price lists are as follows: Click here for the Excel Data File Ordering cost is $40 and annual holding cost is 25 percent of unit price per unit. a-1. Which supplier should be used? Supplier A Supplier B a-2. What order quantity is optimal if the intent is to minimize total annual costs? 500300200350 1 150 \begin{tabular}{|l|r|r|} \hline & \multicolumn{1}{|c|}{ A } & \multicolumn{1}{c|}{ B } \\ \hline 1 & \multicolumn{2}{|c|}{ SUPPLIER A } \\ \cline { 2 - 3 } & \multicolumn{1}{|c|}{ Quantity } & \multicolumn{1}{|c|}{ Unit Price } \\ \hline 3 & 1199 & $14.00 \\ \hline 4 & 200499 & 13.80 \\ 5 & 500+ & 13.60 \\ \hline \end{tabular} C F \begin{tabular}{|c|c|} \hline \multicolumn{2}{|c|}{ SUPPLIER B } \\ \hline Quantity & Unit Price \end{tabular} \begin{tabular}{|r|c|} \hline Quantity & Unit Price \\ \hline 1149 & $14.10 \\ \hline 150349 & 13.90 \\ \hline 350+ & 13.70 \\ \hline \end{tabular}

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