A manufacturing firm has gone out on bid to procure a component. Expected demand is 700 units per month. The item can be purchased from either Vendor A or Vendor B. Their price lists are shown in the table. Ordering cost is $50, and annual holding cost per unit is 30% of the items value.

Vendor A	Vendor B
Quantity	Unit Price	Quantity	Unit Price
1-499	$16.00	1-399	$16.10
500-999	$15.50	400-799	$15.60
1000+	$15.00	800+	$15.10

a) Calculate the economic order quantity.

b) From which vendor is the optimal order quantity and what is the total annual inventory cost?