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 SUPPLIER A SUPPLIER B Quantity Unit Price Quantity Unit Price 1199 $14 00 1149 $14 10 200499 13 80 150349 13 90 500 13 60 350 13 70 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 multiple choice 1 Supplier A Supplier B a 2 What order quantity is optimal if the intent is to minimize total annual costs multiple choice 2 1 350 150 500 300 200

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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 demand is 800 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
1199	$14.00	1149	$14.10
200499	13.80	150349	13.90
500 +	13.60	350 +	13.70

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?

multiple choice 1

Supplier A
Supplier B

a-2. What order quantity is optimal if the intent is to minimize total annual costs?

multiple choice 2

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