Question: Bell Computers purchases integrated chips at $350 per chip. The holding cost is $33 per unit per year, the ordering cost is $119 per order,
Bell Computers purchases integrated chips at $350 per chip. The holding cost is $33 per unit per year, the ordering cost is $119 per order, and sales are steady at 405 per month. The company's supplier, Rich Blue Chip Manufacturing, Inc., decides to offer price concessions in order to attract larger orders. The price structure is shown below. Rich Blue Chip's Price Structure Quantity Purchased Price/Unit
1-99 units $350
100-199 units $325
200 or more units $300
b) Bell Computers wishes to use a 10% holding cost rather than the fixed $33 holding cost in part a. What is the optimal order quantity, and what is the optimal annual cost?
The optimal order quantity after the change in the holding cost calculation is enter your response here units (enter your response as a whole number).
The total annual cost for Bell computers to order, purchase, and hold the integrated chips is $enter your response here (round your response to the nearest whole number).
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