) 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 units (enter your response as a whole number). The total annual cost for Bell computers to order, purchase, and hold the integrated chips is $ (round your response to the nearest whole number).

Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 33P: Assume the demand for a companys drug Wozac during the current year is 50,000, and assume demand...
icon
Related questions
Question
please answer within 30 minutes.
Bell Computers purchases integrated chips at $350 per chip. The holding cost is $36 per unit per year, the ordering cost is $119 per order, and sales are steady at 405 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.
D
Rich Blue Chip's Price Structure
Quantity Purchased
1-99 units
100-199 units
Price/Unit
$350
$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 units (enter your response as a whole number).
The total annual cost for Bell computers to order, purchase, and hold the integrated chips is $ (round your response to the nearest whole number).
Transcribed Image Text:Bell Computers purchases integrated chips at $350 per chip. The holding cost is $36 per unit per year, the ordering cost is $119 per order, and sales are steady at 405 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. D Rich Blue Chip's Price Structure Quantity Purchased 1-99 units 100-199 units Price/Unit $350 $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 units (enter your response as a whole number). The total annual cost for Bell computers to order, purchase, and hold the integrated chips is $ (round your response to the nearest whole number).
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 5 steps with 4 images

Blurred answer
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
Practical Management Science
Practical Management Science
Operations Management
ISBN:
9781337406659
Author:
WINSTON, Wayne L.
Publisher:
Cengage,