Chris Sandvig Irrigation, Inc., has summarized the price list from four potential suppliers of an underground control valve. See the accompanying table on the next page. 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 total cost? lop5 VENDOR A VENDOR B QUANTITY PRICE QUANTITY PRICE 1–49 $35.00 1–74 $34.75 50–74 34.75 75–149 34.00 75–149 33.55 150–299 32.80 150–299 32.35 300–499 31.60 300–499 31.15 5001 30.50 5001 30.75 VENDOR C VENDOR D QUANTITY PRICE QUANTITY PRICE 1–99 $34.50 1–199 $34.25 100–199 33.75 200–399 33.00 200–399 32.50 4001 31.00 4001 31.10