Question: Problem 13-16 A company will begin stocking remote control devices. Expected monthly demand is 800 units. The controllers can be purchased from either supplier A

Problem 13-16 A company will begin stocking

Problem 13-16 A company will begin stocking

Problem 13-16 A company will begin stocking remote control devices. Expected monthly demand is 800 units. The controllers can be purchased from either supplier A or supplier B. Their price lists are as follows: SUPPLIER A Quantity Unit Price 1-199 $14.00 200- 13.80 499 500 + 13.60 SUPPLIER B Quantity Unit Price 1-149 $14.10 150- 349 13.90 350 + 13.70 Ordering cost is $40 and annual holding cost is 25 percent of unit price per unit. a-1. Which supplier should be used? Supplier A Supplier B a-2. What order quantity is optimal if the intent is to minimize total annual costs? 350 O 300 01 200 150 O 500

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