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Part 1
Chris Sandvig Irrigation, Inc., has summarized the price list from four potential suppliers of an underground control valve. See the table below. Annual usage is 800valves; order cost is $11 per order; and annual inventory holding costs are $7.55 per unit.
Vendor A
Vendor B
Vendor C
Vendor D
Quantity
Price
Quantity
Price
Quantity
Price
Quantity
Price
1-9
$35.00
1-14
$34.75
1-24
$34.50
1-74
$34.25
10-14
34.75
15-49
34.00
25-74
33.75
75-199
33.00
15-49
33.55
50-99
32.80
75-199
32.50
200+
31.00
50-99
32.35
100-299
31.60
200+
31.10
100-299
31.15
300+
30.50
300+
30.75
Part 2
Which vendor should be selected and what order quantity is best if Sandvig Irrigation wants to minimize total cost

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