Question: A optical company will start stocking various Eye glass frames for a whole year. Expected monthly demand is 800 units. The eye glass frames can

A optical company will start stocking various Eye

A optical company will start stocking various Eye glass frames for a whole year. Expected monthly demand is 800 units. The eye glass frames can be purchased from either optical eye store's A or B. Their price lists are as follows: Optical A Quantity Unit Price 1 199 P14.00 200 - 499 13.80 500 + 13.60 Optical B Quantity Unit Price 1 - 149 P14.10 150 - 349 13.90 350 + 13.70 Ordering cost is and annual holding cost is 25 percent of unit price per unit. Which optical store should be considered to buy and what order quantity is optimal if the intent is to minimize total annual cost

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