Question: Baran Incorporated can purchase component M from 3 potential suppliers. Supplier A charges a fee of $ 7 . 5 0 per component. Supplier B

Baran Incorporated can purchase component M from 3 potential suppliers. Supplier A
charges a fee of $7.50 per component. Supplier B charges $3000 per order plus $3.00
per component ordered. Supplier C charges $6.00 per component, and requires the
buyer to pay for at least 400 components (even if the order size is less than 400).
4. What is the full range of order sizes where each supplier is optimal?
5. Baran decided to buy 700 units of component M from supplier B. How
much money could the company have saved if it purchased the 700 units
from supplier C instead of supplier B?
6. Next week supplier B will be running a 14% off special. What equation
represents the new Total Cost for supplier B during the sale?
The new equation should provide a cost that is 14% less than the original.

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related General Management Questions!