Emily Larson is in charge of purchasing surgical supplies for a county hospital. Emily is evaluating two suppliers (suppliers A and B) to purchase forceps for the hospital€™s surgical use. The quantity€“price schedules of both suppliers are given in the following table. The annual demand for forceps is 10,000 units. The ordering cost is US$150 per order, and the carrying cost is 20% of the item€™s purchase price per unit:

1. What is the economic order quantity for each supplier?

2. What quantity should be ordered, and from which supplier?

3. What is the total cost for the quantity ordered in €œb€?

4. What additional factors should Emily consider besides total cost?

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Supplier A Supplier B Price per unit (in U.S. dollars) Price per unit (in U.S. dollars) Quantity Ordered Quantity Ordered 0 to 2,999 0 to 3,999 10.00 11.00 2,000 to 4,999 9.50 4,000 to 7,999 10.50 5,000 to 7,999 8.00 8,000 to 11,999 9.00 8,000+ 7.00 12,000+ 7.00