Question: Acme has found an alternative supplier for the sub - assembly who will charge them $ 1 2 0 per unit. However, this supplier is

Acme has found an alternative supplier for the sub-assembly who will charge them $120 per unit. However, this supplier is in China, and is perceived to be riskier in terms of product integrity and supply disruption. As a result of this, Acme will only buy 14,400 units per year from them, and the interest and risk premiums charged will increase their inventory holding costs to 30% of the unit per year. The increased complexity of the ordering process has raised the cost per order to $20,000. If they accept this new supplier for the quantity, what should their Optimal Order Quantity from the China supplier be?
2400
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4000
 Acme has found an alternative supplier for the sub-assembly who will

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