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:
| Quantity | Unit Price |
| 0-199 | $14.00 |
| 200-499 | $13.80 |
| 500+ | $13.60 |
| 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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