LE Paste Font Alignment Number Pas TIC Cell Styles Cells Editing Ideas Sensitivity A1 fx Problem 6 (Total: 60 points) B D E G H Ne 4 Problem 6 (Total: 60 points) 8 6 Andy Gray owns a company which sells AAA batteries. He estimates that the annual demand for batteries at 50,000 packs. Assume tha the demand is constant during 7 the year. Andy buys one pack of batteries for $1.69 from Electron Inc. The ordering cost is $30 per order, and the carrying cost is 10% of the unit cost. 9 A) How many packs of batteries should Andy order if he wishes to minimize the total inventory cost? (30 points) 10 11 B) Andy was apporached by another supplier, Oregon Warehouse. Oregon says they can offer a discounted price of $1.61 per pack if Andy's Company buys at least 12 20,000 packs of batteries. Should Andy switch his supplier? Why? (30 points) 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34