Question

Bell Computers purchases integrated chips at

​$350350

per chip. The holding cost is

​$3737

per unit per​ year, the ordering cost is

​$119119

per​ order, and sales are steady at

395395

per month. The​ company's supplier, Rich Blue Chip​ Manufacturing, Inc., decides to offer price concessions in order to attract larger orders. The price structure is shown below.

                                                                       

Rich Blue​ Chip's Price Structure
Quantity Purchased	​ Price/Unit
​ 1-99 units	​$350
​ 100-199 units	​$325
200 or more units	​$300

​a) What is the optimal order quantity and the minimum annual cost for Bell Computers to​ order, purchase, and hold these integrated​ chips?

The optimal order quantity after the change in pricing structure is nothing units ​(enter your response as a whole ​number).

The total annual cost for Bell computers to​ order, purchase, and hold the integrated chips is ​$nothing ​(round your response to the nearest whole​ number).

Answer 1