Question: Chris Sandvig Irrigation, Inc., has summarized the price list from four potential suppliers of an underground control valve. See the table below. Annual usage is

Chris Sandvig Irrigation, Inc., has summarized the price list from four potential suppliers of an underground control valve. See the table below. 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 Sandvig Irrigation wants to minimize totalcost?

Vendor A Vendor B PriceQuantity Quantity 1-49 50-74 75-149 150-299 300 499 500+ $35.00 34.75 33.55 32.35 31.15 30.75 1-74 75-149 150-299 300-499 500+ Price $34.75 34.00 32.80 31.60 30.50 Vendor C Vendor D Quantity 1-99 100-199 200-399 400+ Price $34.50 33.75 32.50 31.10 Quantity 1--199 200-399 400+ Price $34.25 33.00 31.00

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