(See Solution) Larry Sandberg Irrigation, Inc., has summarized the price list from four potential suppliers of an underground control valve. See the accompanying


Question: (25 points)

Larry Sandberg Irrigation, Inc., has summarized the price list from four potential suppliers of an underground control valve. See the accompanying table. Annual usage is 2,400 valves; order cost is $ "10 per order; and annual inventory holding costs are $ 3.33 per unit. Which vendor should be selected and what order quantity is best if Sandberg Irrigation wants to minimize total cost?

Vendor A Vendor B
Quantity Unit Price Quantity Unit Price
0-49 $35.00 0-74 $34.75
50-74 $34.75 75-149 $34.00
75-149 $3355 150-299 $32.80
150-299 $32.35 300-499 $31.60
300-499 $31:15 500+ $30.50
500+ $30.75
Vendor C Vendor D
Quantity Unit Price Quantity Unit Price
0-99 $34.50 0-199 $34.25
100-199 $33.75 200-399 $33.00
200-399 $32.50 400+ $31.00
400+ $31.10

Price: $2.99
Solution: The downloadable solution consists of 5 pages
Deliverable: Word Document

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