Question: My Kitchen Delights ( MKD ) is considering two new suppliers for the jars used in the production process. The quality at both suppliers is

My Kitchen Delights (MKD) is considering two new suppliers for the jars used in the production process. The quality at both suppliers is equal. Assume that the annual holding cost is 30 percent of the unit price. Monthly demand averages 20,500 jars. Ordering cost with these two suppliers is $31 per order. The price lists for the suppliers are as follows: Supplier A: quantity 1-2499; unit price $3.10 quantity 2500-3499; unit price $3.00 quantity 3500-4999; unit price $2.90 quantity 5000 or more; unit price $2.80 Supplier B: quantity 1-1999; unit price $3.20 quantity 2000-2999; unit price $2.85 quantity 3000-3999; unit price $2.55 quantity 4000-4999; unit price $2.45 quantity 5000 or more; unit price $2.30(Round your answers to 1 decimal place, e.g.,4500.6.)(a) Determine the optimal order quantity when using Supplier A._____ jars (b) Determine the optimal order quantity when using Supplier B._____ jars (c1) Given MKD's lack of space, which supplier do you recommend be used? Supplier _______

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