Explain the given topic and answer the following question.

1. A manufacturing firm has gone out on bid to procure a component. Expected demand is 700 units per month. The item can be purchased from either Vendor A or Vendor B. Their price lists are shown in the table. Ordering cost is $50, and annual holding cost per unit is 30% of the item's value. Calculate the economic order quantity. From which vendor is the optimal order quantity and what is the total annual inventory cost