Question

supplier A data

supplier B data

As a part of its procurement strategy, a company is evaluating whether it should switch to a new supplier. A part of the evaluation will focus on the price schedules that the two suppliers are offering. The annual demand for the product is 220,000 units. The cost of placing an order, independent of the supplier or the order quantity, is $180, and the carrying charge is estimated to be 14% of the item's price. Which supplier and what order quantity should the company use if its objective is to minimize its total related inventory costs? Click the icon to view the quantity discount schedule of supplier A. Click the icon to view the quantity discount schedule of supplier B. The company should order units from Supplier (Enter your response rounded to the nearest whole number.) \begin{tabular}{cc} Order Quantity & Price per Unit \\ \hline 04,999 & $24 \\ 5,0009,499 & $22 \\ 9,500 or more & $21 \\ \hline \end{tabular} \begin{tabular}{cc} \hline Order Quantity & Price per Unit \\ \hline 03,999 & $23 \\ 4,0007,999 & $22 \\ 8,00012,499 & $20 \\ 12,500 or more & $18 \\ \hline \end{tabular}