We need 15000 units per year two suppliers for those units, Ask an Expert

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We need 15000 units per year. Two suppliers for those units have provided us their quotes. The order cost is $100 per order and holding cost is $10 per unit per month.

Quantity to order Supplier 1 Supplier 2

1-499 $55 $53

500-999 $50 $52

1000 and more $46 $47

a) What is the economic order quantity?

b) Which supplier to purchase from? Why?

c) What is the optimum order quantity and total annual cost?

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HR Management, Management Studies

Category:- HR Management
Reference No.:- M92552028

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