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1.) THI produces a GPS device that is becoming popular in parts of Scandinavia. When Thaarugo produces one of these, a printed circuit board (PCB) is used and it is populated with several electronic components. Thaarugo determines that it needs about 16,500 of this type of PCB each year. Demand is relatively constant throughout the year and the ordering cost is about $20/ order; the holding cost is 25% of the price of each PCB. Two companies are competing to become the dominant supplier of PCB, and both have offered quantity discounts as shown in the following table.

1.) THI produces a GPS device that is becoming popular in parts of Scandinavia. When Thaarugo produces one of these, a printed circuit board (PCB) is used and it is populated with several electronic components. Thaarugo determines that it needs about 16,500 of this type of PCB each year. Demand is relatively constant throughout the year and the ordering cost is about $20/ order; the holding cost is 25% of the price of each PCB. Two companies are competing to become the dominant supplier of PCB, and both have offered quantity discounts as shown in the following table.

Practical Management Science
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
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1.) THI produces a GPS device that is becoming popular in parts of Scandinavia. When Thaarugo produces one of these, a printed circuit board (PCB) is used and it is populated with several electronic components. Thaarugo determines that it needs about 16,500 of this type of PCB each year. Demand is relatively constant throughout the year and the ordering cost is about $20/ order; the holding cost is 25% of the price of each PCB. Two companies are competing to become the dominant supplier of PCB, and both have offered quantity discounts as shown in the following table. paper). If you work with someone just turn in 1 paper with everyone's name. REMEMBER TO EXPLICITLY WRITE THE FORMULAS USED AND THE VALUE FOR EACH VARIABLE. Which of the two suppliers should be selected if Thaarugo wishes to minimize total annual inventory costs? Explain. Supplier A- Quantity 1-199 200-499 500 or more Supplier A Price $38.60 $35.75 $34.80 un names on a Supplier B- Quantity 1-299 300-999 1000 or more Supplier B Price $38.90 $35.25 $34.70
Transcribed Image Text:1.) THI produces a GPS device that is becoming popular in parts of Scandinavia. When Thaarugo produces one of these, a printed circuit board (PCB) is used and it is populated with several electronic components. Thaarugo determines that it needs about 16,500 of this type of PCB each year. Demand is relatively constant throughout the year and the ordering cost is about $20/ order; the holding cost is 25% of the price of each PCB. Two companies are competing to become the dominant supplier of PCB, and both have offered quantity discounts as shown in the following table. paper). If you work with someone just turn in 1 paper with everyone's name. REMEMBER TO EXPLICITLY WRITE THE FORMULAS USED AND THE VALUE FOR EACH VARIABLE. Which of the two suppliers should be selected if Thaarugo wishes to minimize total annual inventory costs? Explain. Supplier A- Quantity 1-199 200-499 500 or more Supplier A Price $38.60 $35.75 $34.80 un names on a Supplier B- Quantity 1-299 300-999 1000 or more Supplier B Price $38.90 $35.25 $34.70
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