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Nagatex Manufacturing has gone out on bid for a regulator component. Expected demand is 700 units per month. The item can be purchased from either

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Nagatex Manufacturing has gone out on bid for a regulator component. Expected demand is 700 units per month. The item can be purchased from either A or B. Their price lists are shown in Table 2. Ordering cost is RM50, and annual holding cost per unit is RM5. Tahlo? a) What is the economic order quantity? b) Which supplier should be used? Why? c) What is the optimal order quantity and the total annual cost of ordering, purchasing, and holding the component? Nagatex Manufacturing has gone out on bid for a regulator component. Expected demand is 700 units per month. The item can be purchased from either A or B. Their price lists are shown in Table 2. Ordering cost is RM50, and annual holding cost per unit is RM5. Tahlo? a) What is the economic order quantity? b) Which supplier should be used? Why? c) What is the optimal order quantity and the total annual cost of ordering, purchasing, and holding the component

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