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ABC, Inc., produces a GPS device that is becoming popular in parts of Europe. When XYZ produces one of these, a printed circuit board (
ABC, Inc., produces a GPS device that is becoming popular in parts of Europe. When XYZ 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. Supplier A Supplier B
$
$
$
$
or more $
or more $
If ABC wishes to minimize the total annual inventory cost and chooses Supplier B and decides to order
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