[See Solution] A company will begin stocking remote control devices. Expected monthly demand is 800 units. Ordering cost is $40 and annual holding cost
Question: (15 points)
A company will begin stocking remote control devices. Expected monthly demand is 800 units. Ordering cost is $40 and annual holding cost is $4.80 per unit per year. The devices can be purchased from either supplier A or supplier B. Their price lists are as follows:
| Supplier |
A
Unit Price |
| Quantity | |
| 0-199 | $ 14.00 |
| 200-499 | $ 13.80 |
| 500+ | $ 13.60 |
| Supplier |
B
Unit Price |
| Quantity | |
| 0-149 | $ 14.10 |
| - 150-349 | $ 13.90 |
| 350+ | $ 13.7(1 |
Which supplier and order size the company should use?
Price: $2.99
Solution: The downloadable solution consists of 3 pages
Deliverable: Word Document 