1. (50 points) A large producer of household products purchases a particular chemical used in one of its end-items from outside of the company. The company uses that chemical at a fairly steady rate of d kilograms per month. The company operates 12 months in a year. The company uses an i percent annual interest rate to compute holding costs. The chemical can be purchased from two suppliers, A and B. A offers the following all-units discount schedule: Order size (Q) Price per kilogram OSOS 914 SCA 914 42A $(CA-0.40) Supplier B offers the following incremental discount schedule: $cs per kilogram for all orders less than or equal to gre kilograms and $(c8 - 0.15) per kilogram for all orders above qis kilograms. Assume that the cost of order processing for each supplier is $A. Before solving the question, fill in the following table by selecting integer values from the given intervals and copy only the 1" and 3 columns into your answer sheet. Parameter Interval Selected value d [100: 200] 3 i [10:20] 91A [500, 700] 42A [800 ; 1,000] CA [3: 6] CB [2:5] 41B [600 ; 800] [50; 100] IMPORTANT NOTE: USE () TO REPRESENT THOUSANDS; USE() TO REPRESENT DECIMALS. a) (42 pts) Which supplier should be preferred? Why? Find the best quantity to order and the corresponding minimum total annual average cost for Supplier A & B, respectively. Show all your work. b) (4 pts) What is the optimal quantity to order? c) (4 pts) What is the minimum annual average total cost? 1. (50 points) A large producer of household products purchases a particular chemical used in one of its end-items from outside of the company. The company uses that chemical at a fairly steady rate of d kilograms per month. The company operates 12 months in a year. The company uses an i percent annual interest rate to compute holding costs. The chemical can be purchased from two suppliers, A and B. A offers the following all-units discount schedule: Order size (Q) Price per kilogram OSOS 914 SCA 914 42A $(CA-0.40) Supplier B offers the following incremental discount schedule: $cs per kilogram for all orders less than or equal to gre kilograms and $(c8 - 0.15) per kilogram for all orders above qis kilograms. Assume that the cost of order processing for each supplier is $A. Before solving the question, fill in the following table by selecting integer values from the given intervals and copy only the 1" and 3 columns into your answer sheet. Parameter Interval Selected value d [100: 200] 3 i [10:20] 91A [500, 700] 42A [800 ; 1,000] CA [3: 6] CB [2:5] 41B [600 ; 800] [50; 100] IMPORTANT NOTE: USE () TO REPRESENT THOUSANDS; USE() TO REPRESENT DECIMALS. a) (42 pts) Which supplier should be preferred? Why? Find the best quantity to order and the corresponding minimum total annual average cost for Supplier A & B, respectively. Show all your work. b) (4 pts) What is the optimal quantity to order? c) (4 pts) What is the minimum annual average total cost