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

A company will begin to stock remote control devices. Expected monthly demand is 800 units. The controllers can be purchased from either supplier A or supplier B. Their price list is as follows: Supplier A Supplier B Quantity 1-199 200-499 500+ Unit Price $14.00 $13.80 $13.60 Quantity 1-149 150-349 350+ Unit Price $14.10 $13.90 $13.70 Ordering cost is $40 and annual holding cost is 25% of unit price. Which supplier should be used and what order quantity that will minimize total inventory cost? (15 marks)

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