Question: Q6. (16 points): A company will begin stocking remote control devices. Expected monthly demand is 800 units. The controllers can be purchased from either supplier

Q6. (16 points): A company will begin stocking

Q6. (16 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. The price lists are as follows. Supplier A Quantity Price / unit 1-199 $14.00 200-499 $13.80 500+ $13.60 Supplier B Quantity Price / unit 1-149 $14.10 150-349 $13.90 350+ $13.70 Ordering cost is $40 and annual holding costs are 25% of unit price per unit. The intent is to minimize total annual costs. a. Which supplier should be used b. What order quantity is optimal c. How many orders per year are placed? d. If the lead time is one week, what is the reorder point? Please make sure that you show your calculations

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