Question: Please help me find the answer for the second question. Left table is supplier A and right table is supplier B. ANSWER IS NOT 6133.

Please help me find the answer for the second question. Left table is supplier A and right table is supplier B. ANSWER IS NOT 6133.Please help me find the answer for the second

As a part of its procurement strategy, a company is evaluating whether it should switch to a new supplier. A part of the evaluation will focus on the price schedules that the two suppliers are offering. The annual demand for the product is 230,000 units. The cost of placing an order, independent of the supplier or the order quantity, is $320, and the carrying charge is estimated to be 12% of the item's price. Which supplier and what order quantity should the company use if its objective is to minimize its total related inventory costs? Click the icon to view the quantity discount schedule of supplier A. Click the icon to view the quantity discount schedule of supplier B. The company should order 12000 units from Supplier B (Enter your response rounded to the nearest whole number.) The total annualized ordering costs for this optimal quantity is $ 1. (Enter your response rounded to the nearest dollar.) X X i More Info More Info Order Quantity 04,999 5,000-9,999 10,000 or more Price per Unit $37 $36 $35 Order Quantity 03,999 4,0007,999 8,000 -11,999 12,000 or more Price per Unit $36 $35 $34 $32 Print Done Print Done

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related General Management Questions!