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A company will begin stocking remote control devices. Expected monthly demand is 710 units. The controllers can be purchased from either supplier A or supplier
A company will begin stocking remote control devices. Expected monthly demand is 710 units. The controllers can be purchased from either supplier A or supplier B. Their price lists are as follows: Ordering cost is $30 and annual holding cost is 25 percent of unit price per unit. a-1. Which supplier should be used? Supplier A Supplier B a. What order quantity is optimal if the intent is to minimize total annual costs? 500 250 200 300 393.58 390.64
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