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Frank operates The Frankfurter, a hot dog restaurant in a food court. He is trying to improve his cost by making a supplier and transporter

Frank operates The Frankfurter, a hot dog restaurant in a food court. He is trying to improve his cost by making a supplier and transporter selection decision. The two options are: to buy his dogs from Franks and Beans, a local supplier, or Cow and Pig, a national meat warehouse. The two suppliers differ in the per-unit price. Transporter offers different fixed transportation cost per order to deliver goods from different suppliers to The Frankfurter. The relevant data for The Frankfurter, as well as the two suppliers and the transporter, is as follows:
The Frankfurter
D =36500 dogs/yr
Annual Interest rate =20%
Franks and Beans
Per-unit price = $0.20/ dog
Fixed transportation cost
= $5/ order
Cow and Pig
Per-unit price = $0.19/ dog
Fixed transportation cost
= $50/ order
If he buys from Frank and Beans, what will be the (i) holding cost in $ per unit per year (ii) optimal order size EOQ, and (iii) Annual ordering (transportation) cost and annual holding cost?

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