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Feels Like 98 has is deciding between two suppliers (A and B) for purchasing bags of barley. The brewery has forecasted that it will
Feels Like 98 has is deciding between two suppliers (A and B) for purchasing bags of barley. The brewery has forecasted that it will require 16,000 bags of barley each year. Demand is relatively constant through the year and the company estimates that it costs $25 for it to place an order with a supplier. Feels Like 98's accountant (Sara) has also calculated that it should use a holding cost that is 20% of the cost of a bag of barley. The two suppliers have given the brewery's supplier relationship coordinator (Ted) a price schedule for bags of barley. Use the information above and price schedules below to complete questions 1 through 3 below Supplier A Supplier B Price per Bag of Price per Bag of Quantity Ordered Quantity Ordered Barley Barley 1-199 $38.40 1-299 $39.50 200-499 $35.80 300-999 $35.40 500 or more $34.70 1,000 or more $34.60
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