Bell Computers purchases integrated chips at

$350.00

per chip. The holding cost is

$35.00

per unit per year, the ordering cost is

$120.00

per order, and sales are steady at

400

per month. The company's supplier, Rich Blue Chip Manufacturing, Inc., decides to offer price concessions in order to attract larger orders. The price structure is shown below.

Rich Blue Chip's Price Structure
Quantity Purchased	Price/Unit
1-99 units	$350
100-199 units	$325
200 or more units	$300

a) What is the optimal order quantity and the minimum annual cost for Bell Computers to order, purchase, and hold these integrated chips?

Part 2The optimal order quantity after the change in pricing structure is

200

units (enter your response as a whole

number).

The total annual cost for Bell computers to order, purchase, and hold the integrated chips is

$1446380

(round your response to the nearest whole number).Part 3b) Bell Computers wishes to use a

10%

holding cost rather than the fixed

$35.00

holding cost in part a. What is the optimal order quantity, and what is the optimal annual cost?

The optimal order quantity after the change in the holding cost calculation is

___________

units (enter your response as a whole

number).

The total annual cost for Bell computers to order, purchase, and hold the integrated chips is

$___________

(round your response to the nearest whole number).