Question: Universal Technologies has identified two qualified vendors with the capability to supply electronic components. Each vendor has different pricing schemes for the three products, including
Universal Technologies has identified two qualified vendors with the capability to supply electronic components. Each vendor has different pricing schemes for the three products, including some discounts based on the volume purchased, as shown in the table below (this will require the use of linking constraints based on the volume ranges. For the coming year, Universal has estimated its volume requirements for these components and has obtained pricebreak schedules from each vendor. The products sold by each vendor are identical, so a product may be bought from each of the vendors (e.g. half of the units for Product 1 could be purchased from Vendor A and the other half purchased from Vendor B). Universal believes each Vendor has the necessary capacity to meet any level of demand based on the requirements, however, Universal wants to make sure that neither Vendor receives more than \(60\%\) of the total requirement.
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