Question
Bell Computers purchases integrated chips at $350350 per chip. The holding cost is $3737 per unit per year, the ordering cost is $119119 per order,
Bell Computers purchases integrated chips at
$350350
per chip. The holding cost is
$3737
per unit per year, the ordering cost is
$119119
per order, and sales are steady at
395395
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?
The optimal order quantity after the change in pricing structure is nothing units (enter your response as a whole number).
The total annual cost for Bell computers to order, purchase, and hold the integrated chips is $nothing (round your response to the nearest whole number).
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