QUESTION THREE Emery Pharmaceutical uses an unstable chemical compound that must be kept in an environment where both temperature and humidity can be controlled. Emery uses 200 pounds per month of the chemical, estimates the holding cost to be 3.33 (because of spoilage), and estimates order costs to be 10 per order. The cost schedules of four suppliers are as follows: Vendor 1 Vendor 2 Quantity Price/LB () Quantity Price/LB (E) 1-74 34.75 34.00 32.80 1-49 35.00 50-74 34.75 75-149 75-149 33.55 150-299 150-299 32.35 300.499 31.60 300-499 31.1S 500+ 35.50 500- 30.75 Vendor 3 Vendor 4 Quantity Price/LB () Quantity Price/LB (E) 1.99 34.50 1-199 34.25 100-199 33.75 200-399 33,00 200-399 32.50 400+ 31.00 400+ 31.10 What quantity should be ordered and which supplier should be used? (25 marks) b) Discuss factor(s) should be considered besides total cost. (5 marks) Total 30 Marks