Question: Q5) Bell Computers purchases integrated chips at $350 per chip. The holding cost is $35 per unit per year, the ordering cost is $120 per

Q5) Bell Computers purchases integrated chips at $350 per chip. The holding cost is $35 per unit per year, the ordering cost is $120 per order, and sales are steady, at 400 per month. The companys supplier, Rich Blue Chip Manufacturing, Inc., decides to offer price concessions in order to attract larger orders. The price structure is shown below.

Q5) Bell Computers purchases integrated chips at

What is the optimal order quantity and the minimum annual cost for Bell Computers to order, purchase, and hold these integrated chips?

QUANTITY PURCHASED 1-99 units 100-199 units 200 or more units PRICE/UNIT $350 $325 $300

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