Lenovo needs to source the hexa-core processors used in the production of Thinkpad X1 Yoga laptops. Lenovo requires these processors at a fairly steady rate of 45 per month. Lenovo should decide among two suppliers having dierent price schedules for these processors. Supplier A offers an all-units discount schedule for its processors: It charges $350 for each processor if the order size is less than 25, $315 for each processor if the order size is between 25 and 49, and $280 for each processor if the order size is greater than 49. The order setup cost required by this supplier is $100. Supplier B offers an incremental discount schedule for its processors: It charges $350 for each processor if the order size is less than or equal to 25, $300 for each processor purchased beyond 25 if the order size is between 26 and 50, and $250 for each processor purchased beyond 50. The order setup cost required by this supplier is $40.

(c) Which supplier should Lenovo choose and why? (d) Suppose that Lenovo wants to hold no more than 100 processors in its inventory at any time. Would your answer in part (c) be different in this case? Why or why not?