Question: please help! Alvarez Incorporated can purchase component X from 3 potential suppliers. Supplier A charges a fee of $6.50 per component. Supplier B charges $2100
Alvarez Incorporated can purchase component X from 3 potential suppliers. Supplier A charges a fee of $6.50 per component. Supplier B charges $2100 per order plus $2.50 per component ordered. Supplier C charges $4.00 per component, and requires the buyer to pay for at least 300 components (even if the order size is less than 300 ). 4. What is the full range of order sizes where each supplier is optimal? 5. Alvarez decided to buy 1000 units of component X from supplier B. How much money could the company have saved if it purchased the 1000 units from supplier C instead of supplier B? 6. Next week supplier B will be running a 18% off special. What equation represents the new Total Cost for supplier B during the sale? Hint: plug the same number of units into both the new and the original Total Cost equations. The new equation should provide a value that is 18% less than the original
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
