A large producer purchases a special kind of oil, used in one of its products from...

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A large producer purchases a special kind of oil, used in one of its products from suppliers. It uses this oil at a fairly steady rate of 40 pounds per month, and the company uses a (p) percent annual interest rate to compute holding costs. The oil can be purchased from two suppliers, A and B. Company A offers the following all-units discount schedule: Order Size 0Q <500 500 Q1,000 1000 Q Price per Pound $6.92 $6.82 $6.2 On the other hand, B offers the following incremental discount schedule: $6.8 per pound for all orders less than or equal to 700 pounds, and $5.6 per pound for all incremental amounts over 700 pounds. Assume that the cost of order processing for each case is $150. Which supplier should be used and what should be the replenishment order size? Given the provided value p = 0.62 analyze the data to determine the optimal supplier and the corresponding replenishment order size. Subsequently, identify the most favorable option for placing the order based on these calculations. A large producer purchases a special kind of oil, used in one of its products from suppliers. It uses this oil at a fairly steady rate of 40 pounds per month, and the company uses a (p) percent annual interest rate to compute holding costs. The oil can be purchased from two suppliers, A and B. Company A offers the following all-units discount schedule: Order Size 0Q <500 500 Q1,000 1000 Q Price per Pound $6.92 $6.82 $6.2 On the other hand, B offers the following incremental discount schedule: $6.8 per pound for all orders less than or equal to 700 pounds, and $5.6 per pound for all incremental amounts over 700 pounds. Assume that the cost of order processing for each case is $150. Which supplier should be used and what should be the replenishment order size? Given the provided value p = 0.62 analyze the data to determine the optimal supplier and the corresponding replenishment order size. Subsequently, identify the most favorable option for placing the order based on these calculations.