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Bell Computers purchases integrated chips at $350 per chip. The holding cost is $35 per unit per year, the ordering cost is $121 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 $350 100-199 units 200 or more units $325 $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)

Bell Computers purchases integrated chips at $350 per chip. The holding cost is $35 per unit per year, the ordering cost is $121 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 $350 100-199 units 200 or more units $325 $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)

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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Bell Computers purchases integrated chips at $350 per chip. The holding cost is $35 per unit per year, the ordering cost is $121 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 100-199 units 200 or more units Price/Unit $350 $325 $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 number). units (enter your response as a whole The total annual cost for Bell computers to order, purchase, and hold the integrated chips is $(round your response to the nearest whole number) ho b) E the Clear all eck answer Get more help - Exp
Transcribed Image Text:Bell Computers purchases integrated chips at $350 per chip. The holding cost is $35 per unit per year, the ordering cost is $121 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 100-199 units 200 or more units Price/Unit $350 $325 $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 number). units (enter your response as a whole The total annual cost for Bell computers to order, purchase, and hold the integrated chips is $(round your response to the nearest whole number) ho b) E the Clear all eck answer Get more help - Exp
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