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ABC Inc . , produces a GPS device that is becoming popular in parts of Europe. When the company produces one of these, a printed
ABC Inc produces a GPS device that is becoming popular in parts of Europe. When the company produces one of these, a printed circuit board PCB is used, and it is populated with several electronic components. It determines that it needs about per year of this type of PCB Demand is relatively constant throughout the year, and the ordering cost is about $ per order, the holding cost is of the price of each PCB Two companies are competing to become the dominant supplier of the PCBs and both have now offered discounts, as shown in the following table. ABC Chooses supplier B and orders units
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