Question: A company will begin stocking remote control devices. The expected monthly demand is 8 0 0 units. The controllers can be purchased from either supplier

A company will begin stocking remote control devices. The 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
1-199
$14.00
1149
$14.10
200-499
$13.80
150-349
$13.90
500+
$13.60
350+
$13.70
The ordering cost is $40 for Supplier A and $58 for Supplier B, and the annual holding cost is $4 per unit in both cases.

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