Question: Bell Computers purchases integrated chips at $350 per chip. The holding cost is $35 per unit per year, the ordering cost is $123 per order,
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Bell Computers purchases integrated chips at $350 per chip. The holding cost is $35 per unit per year, the ordering cost is $123 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 optimal order quantity and the minimum annual cost for Bell Computers to order, purchase, and hold these integrated chips?
The optimal order quantity after the change in pricing structure is _____ units (enter your response as a whole number).
The total annual cost for Bell computers to order, purchase, and hold the integrated chips is $_____(round your response to the nearest whole number).
b) Bell Computers wishes to use a 10% holding cost rather than the fixed $35 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 ____units (enter your response as a whole number).
The total annual cost for Bell computers to order, purchase, and hold the integrated chips is $____(round your response to the nearest whole number).
Bell Computers purchases integrated clips $350 per chip. The holding cost is $35 per unit per year, the ordering cost is $123 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 tract larger orders. The price structure is shown below Rich Blue Chip's Price Structure Quantity Purchased Price Unit 1.90 units $350 100-100 $325 200 or more units $300 a) What is the optimal order quantity and the minimum al cost for Bell Computers to order purchase, and hold these integrated chips? The optimal order quanday after the change in proing wucture units (enter your response as a whole ruter) The total anual cost for Bel computer to order, purchase, and hold the integrated chips is $ cround your response to the nearest whole number). b) Bell Computers wishes to use a 10% holding cost rather than the fired 535 holding cost in part a What is the optimal order quantity, and what is the optimal al comt? The optimal order Quantity after the change in the holding cost caution is unts (enter your response as a whole number) The total anual cost for Bel computers to order, purchase, and hold the integrated chips is fround your response to the nearest whole number)Step by Step Solution
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