Question: Problem 3 (5 points) A company will begin stocking remote control devices. Expected monthly demand is 800 units. The controllers can be purchased from either

Problem 3 (5 points) 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: SUPPLIERA SUPPLIER B Quantity Unit 1-149 Quantity Unit Price Price 1-199 $14.00 $14.10 200499 13.80 13.90 500+ 13.60 13.70 150349 350+ Ordering cost is $45 and annual holding cost is 30% of unit price per unit. (a) What are the optimal total annual costs in the case of Supplier A? (272 points) (b) What are the optimal total annual costs in the case of Supplier B? (22 points)

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