Question: A company will begin stocking remote control devices. Expected monthly demand is 600 units. The controllers can be purchased from either supplier A or supplier

A company will begin stocking remote control devices. Expected monthly demand is 600 units. The

controllers can be purchased from either supplier A or supplier B. Their price lists are as follows:

A company will begin stocking remote control

A company will begin stocking remote control devices. Expected monthly demand is 600 units. The controllers can be purchased from either supplier A or supplier B. Their price lists are as follows: SUPPLIER A SUPPLIER B Quantity Unit Price Quantity Unit Price 1-199 $14.00 1-149 $14.10 200-499 13.80 150-349 13.90 500 + 13.60 350 + 13.70 Ordering cost is $30 and annual holding cost is 20% of unit price per unit. Which supplier should be used and what order quantity is optimal if the intent is to minimize total annual costs

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