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.. 12.22 Bell Computers purchases integrated chips at $350 per chip. The holding cost is $35 per unit per year, the ordering cost is $120 per order, and sales are steady, at 400 per month. The company's supplier, Rich Blue Chip Manufacturing, Inc., decides to offer price concessions in order to attract larger orders. The price structure is shown below. Rich Blue Chip's Price Structure QUANTITY PURCHASED PRICE/UNIT 1-99 units $350 100-199 units $325 200 or more units $300 a) What is the optimal order quantity and the minimum annual cost for Bell Computers to order, purchase, and hold these integrated chips? 12.29 Kim Clark has asked you to help him determine the best ordering policy for a new product. The demand for the new product has been forecasted to be about 1,000 units annually. To help you get a handle on the carrying and ordering costs, Kim has given you the list of last year's costs. He thought that these costs might be appropriate for the new product. COST FACTOR COST (5) COST FACTOR COST (5) Taxes for the 2,000 Warehouse supplies 280 warehouse Receiving and 1,500 Research and 2,750 incoming inspection development New product 2,500 Purchasing salaries & 30,000 development wages Acct. Dept. costs to 500 Warehouse salaries 12,800 pay invoices & wages Inventory insurance Pilferage of inventory 800 Product advertising Purchase order 500 supplies Spoilage 750 Inventory obsolescence 300 Sending purchasing 800 Purchasing Dept. 1,000 orders overhead 600 800 He also told you that these data were compiled for 10,000 inven- tory items that were carried or held during the year. You have also determined that 200 orders were placed last year. Your job as a new operations management graduate is to help Kim determine the economic order quantity for the new product