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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 9,600per year of this type of PCB .Demand is relatively constant throughout the year, and the ordering cost is about $ 40per order, the holding cost is 25%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 471 units

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