Bell Computers purchases integrated chips at $350 per chip. The holding cost is $35 per unit per year, the ordering cost is $119 per order, and sales are steady at 400 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 1-99 units Price/Unit $350 $325- $300 100-199 units 200 more units a) What is the most cost-effective order quantity and the minimum annual cost for Bell Computers to order, purchase, and hold these integrated chips, using the data and discount choices provided, and using a fixed holding cost? The most cost-effective order quantity (assuming they take the most cost-effective discount, and use a fixed holding cost) is units (enter your response as a whole number). At the chosen level of quantity discount, and using the fixed holding cost, what is the total annual cost for Bell computers to order, purchase, and hold the integrated chips : $ (round your response to the nearest whole number).

Bell Computers purchases integrated chips at $350 per chip. The holding cost is $35 per unit per year, the ordering cost is $119 per order, and sales are steady at 400 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 1-99 units Price/Unit $350 $325- $300 100-199 units 200 more units a) What is the most cost-effective order quantity and the minimum annual cost for Bell Computers to order, purchase, and hold these integrated chips, using the data and discount choices provided, and using a fixed holding cost? The most cost-effective order quantity (assuming they take the most cost-effective discount, and use a fixed holding cost) is units (enter your response as a whole number). At the chosen level of quantity discount, and using the fixed holding cost, what is the total annual cost for Bell computers to order, purchase, and hold the integrated chips : $ (round your response to the nearest whole number).

Purchasing and Supply Chain Management

6th Edition

ISBN:9781285869681

Author:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson

Publisher:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson

Chapter2: The Purchasing Process

Section: Chapter Questions

Problem 1GPE

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