Question: Problem 2 (25 points) A company will begin stocking remote control devices. Expected monthly demand is 80 units. Ordering cost is $81 and annual holding

Problem 2 (25 points) A company will begin stocking remote control devices. Expected monthly demand is 80 units. Ordering cost is $81 and annual holding cost is $4.80 per unit per year. The devices can be purchased from either supplier A or supplier B. Their price lists are as follows:

Supplier A
Quantity Unit Price
0-199 $14.00
200-499 $13.80
500+ $13.60

Supplier B
Quantity Unit Price
0-149 $14.10
150-349 $13.90
350+ $13.70

Which supplier and order size the company should use?

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