Question: please explain everything Bell Computers purchases integrated chips at $350.00 per chip. The holding cost is $35.00 per unit per year, the ordering cost is

please explain everything Bell Computers

please explain everything Bell Computers

please explain everything

Bell Computers purchases integrated chips at $350.00 per chip. The holding cost is $35.00 per unit per year, the ordering cost is $120.00 per order, and sales are steady at 400 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. a) What is the optimal order quantity and the minimum annual cost for Bell Computers to order, purchase, and hold these integrated chips? The optimal order quantity after the change in pricing structure is units (enter your response as a whole number). The total annual cost for Bell computers to order, purchase, and hold the integrated chips is 9 (round your response to the nearest whole number). (b) Bell Computers wishes to use a 10% holding cost rather than the fixed holding cost. Determine the optimal order quantity and optimal cost as below

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