Question: Bell Computers purchases integrated chips at $350 per chip. The holding cost is $36 per unit per year, the ordering cost is $122 per order,

Bell Computers purchases integrated chips at $350

Bell Computers purchases integrated chips at $350 per chip. The holding cost is $36 per unit per year, the ordering cost is $122 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 a) What is the most cost-effective order quantity and the minimum annual cost for Bell Computers to order, purchase, and hold these integrated chips, using the data and discount choices provided, and using a fixed holding cost? The most cost-effective order quantity (assuming they take the most cost-effective discount, and use a fixed holding cost) is units (enter your response as a whole number). nd your response to the At the chosen level of quantity discount, and using the fixed holding cost, what is the total annual cost for Bell computers to order, purchase, and hold the integrated chir nearest whole number). b) Bell Computers wishes to recalculate using a 10% holding cost rather than the fixed $36 holding cost in part a. What is the most cost-effective order quantity, and what is the corresponding annual cost? The most cost-effective order quantity (assuming they take the most cost-effective discount, and use a percentage-of-price holding cost) is units (enter your response as a whole number). (round your response At the chosen level of quantity discount, and using the percentage-of-price holding cost, what is the total annual cost for Bell computers to order, purchase, and hold the integrated chips : $ to the nearest whole number)

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!