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The manager of a large TV store wants to begin stocking a typeof remote control device. Ex

The manager of a large TV store wants to begin stocking a typeof remote control device. Ex

The manager of a large TV store wants to begin stocking a typeof remote control device. Expected monthly demand is 800 units. Theremote controls can be purchased from either supplier A or supplierB. Their price lists are as follows:

Supplier A

Quantity

Unit price

1-199

$14.00

200-499

$13.80

500+

$13.60

Supplier B

Quantity

Unit price

1-149

$14.10

150-349

$13.90

350+

$13.70

Ordering cost is $40 per order and annual holding cost is 25percent of unit price. Which supplier should be used and what orderquantity is optimal if the intent is to minimize total annualcost?

Abhinav 02-Dec-2019

Answer (UnSolved)

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