Question: Please do not use Excel and show steps. 2 part question. Bell computers purchases integrated chips at $350 per chip. The holding cost is $36

Please do not use Excel and show steps.

2 part question.

Bell computers purchases integrated chips at $350 per chip. The holding cost is $36 per unit per year, the ordering cost is $119 per order, and sales are steady at 395 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.

Quantity Purchased Price/Unit 1 - 99 units 350 100 - 199 units 325 200 - More units 300

a) What is the optimal order quantity and the minimum annual cost for Bell Computers to order, purchase, and hold integrated chips? The optimal order quantity after the change in pricing structure is --- units.

The total cost annual cost for Bell computers to order, purchase, and hold the integrated chips is $-----

b) Bell Computers wishes to use a 10% holding cost rather than fixed $35 holding cost in part (a). What is the optimal order quantity and what is the optimal cost?

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