Trelex AA is actively developing a weight loss food supplement named Proctologist, with promising results. With plans to launch in Mexico, where $43\%$ of the population grapples with uncontrolled obesity, the company faces a packaging challenge due to transportation constraints. Identifying $5$ suppliers with varying pricing options, Table $1$ illustrates the price breakdown. The U$.$S$.$ demand is $250$ units weekly, and Mexican demand is anticipated to be $12\mathrm{.}5\%$ lower in the first year. Trelex AA's ordering cost is $$275,$ with an estimated $32\%$ annual holding cost. The base unit price is $$6\mathrm{.}45,$ and exceeding storage capacity $(875)$ incurs $50\%$ of the purchasing price paid. Considering total costs and constraints presented, determine the best supplier. To make a judicious decision, we need further information on the inventory$`$ policy $($Number of orders, average inventory and days to be supplied for the best option. The options for each supplier is presented in Table $1.$

Supplier

Discount

Discount

$1$

$0$

$899$

$0$

$2$

$900$

$1399$

$2\mathrm{.}5$

$3$

$1400$

$1999$

$3\mathrm{.}5$

$4$

$2000$

$2999$

$4\mathrm{.}5$

$5$

$3000$

$3999$

$7\mathrm{.}5$

$6$

$4000$

over

$8\mathrm{.}5$Trelex AA is actively developing a weight loss food supplement named Proctologist,

with promising results. With plans to launch in Mexico, where $43\%$ of the population

grapples with uncontrolled obesity, the company faces a packaging challenge due to

transportation constraints. Identifying $5$ suppliers with varying pricing options, Table $1$

illustrates the price breakdown. The U$.$S$.$ demand is $250$ units weekly, and Mexican

demand is anticipated to be $12\mathrm{.}5\%$ lower in the first year. Trelex AA's ordering cost is

$$275,$ with an estimated $32\%$ annual holding cost. The base unit price is $$6\mathrm{.}45,$ and

exceeding storage capacity $(875)$ incurs $50\%$ of the purchasing price paid.

Considering total costs and constraints presented, determine the best supplier. To

make a judicious decision, we need further information on the inventory policy

$($Number of orders, average inventory and days to be supplied for the best option. The

options for each supplier is presented in Table $1.$