Question: Bell Computers purchases integrated chips at $ per chip. The holding cost is $ per unit per year, the ordering cost is $ per order,
Bell Computers purchases integrated chips at $ per chip. The holding cost is $ per unit per year, the ordering cost is $ per order, and sales are steady at 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
PriceUnit
units
$
units
$
or more units
$
a What is the optimal order quantity and the minimum annual cost for Bell Computers to order, purchase, and hold these integrated chips?
Part
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
Part
b Bell Computers wishes to use a holding cost rather than the fixed $ 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
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