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

A company will begin stocking remote control devioes. 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
Ordering cost is $40 and annual holding cost is 25 percent 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?
A company will begin stocking remote control devioes. Expected monthly demand

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