Problem 2

Unab Online

Andres Bello

A computer company is dedicated to the production and sale of computers. One of the main elements to build a computer are the video cards, which are obtained from a foreign supplier.

It is necessary to determine the economic order batch of cards that must be made in order to minimize costs. It has been estimated that the cost of placing an order is US$20, the annual storage cost corresponds to 20% of the value of the product.

The sale price of the cards depends on the quantity purchased, the supplier has established the following prices:

UNITS	Price US$
<300	US$ 10
300	US$ 9.8
500 or more	US$ 9.7

The computer company has determined that 80 video cards are required each month to build and sell computers.

a. Determines the optimal purchase lot to minimize the annual costs related to the purchase of cards.

b. Develop a qualitative analysis based on your answer to the question