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Emery Pharmaceutical uses an unstable chemical compound that must be kept in an environment where both temperature and humidity can be controlled. Emery uses 800
Emery Pharmaceutical uses an unstable chemical compound that must be kept in an environment where both temperature and humidity can be controlled. Emery uses 800 pounds per month of the chemical, estimates the holding cost to be 35% of the purchase price (because of spoilage), and estimates order costs to be $40 per order. The cost schedules of two suppliers are as follows: a) What quantity should be ordered for each vendor, and which vendor should be used? b) What is the total cost for the most economic order size? c) What factor(s) can be considered besides total cost
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