Answer to Question #50186 in Other Management for sara

Question #50186
Question 2. A company has summarized the price list from four potential suppliers of an underground control valve. See the table below. Annual usage is 2,400 valves; order cost is $10 per order; and annual inventory holding cost is $3.33 per unit. a) Which vendor should be selected and what order quantity is best if the company wants to minimize total cost. Vendor A Vendor B Quantity Price ($) Quantity Price ($) 1-49 35 1-74 34.75 50-74 34.75 75-149 34 75-149 33.44 150-299 32.8 150-299 32.35 300-499 31.6 300-499 31.15 500 + 30.5 500 + 30.75 Vendor C Vendor D Quantity Price ($) Quantity Price ($) 1-99 34.5 1-199 34.25 100-199 33.75 200-399 33 200-399 32.5 400 + 31 400 + 31.1 b)If the holding cost is 50% of the purchase price. Find the vendor and the quantity with the minimum total cost.
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