10.The Williams Manufacturing Company uses an average of 250 model 178A relays per week at an approximately...

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10.The Williams Manufacturing Company uses an average of 250 model 178A relays per week at an approximately uniform rate throughout all 52 weeks of the year. The average cost of processing a purchase order is $25. The holding cost for one model 178A relay is approximately $0.10 per week. The supplier has offered two types of delivery plans to Williams:

(a) He will deliver all the order in one shipment, or (4) for an additional

$75 per order, he will deliver the order daily at an average rate of 300 per week until the order quantity is completed. Under plan 8, the order quantity must be an even multiple of 300. Determine the most economical procurement option and the quantity that should be ordered. What is the total annual cost for each plan?

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