Bell Computers purchases integrated chips at $350 per chip. The holding cost is $36 per unit per year, the ordering cost is $118 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. Rich Blue Chip's Price Structure Quantity Purchased Price/Unit $350 $325 $300 1-99 units 100-199 units 200 or more units 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 S |(round your response to the nearest whole number).
Bell Computers purchases integrated chips at $350 per chip. The holding cost is $36 per unit per year, the ordering cost is $118 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. Rich Blue Chip's Price Structure Quantity Purchased Price/Unit $350 $325 $300 1-99 units 100-199 units 200 or more units 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 S |(round your response to the nearest whole number).
Practical Management Science
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ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
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![Bell Computers purchases integrated chips at $350 per chip. The holding cost is $36 per unit per year, the ordering cost is $118
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.
Rich Blue Chip's Price Structure
Quantity Purchased
Price/Unit
$350
$325
$300
1-99 units
100-199 units
200 or more units
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).](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Ff2b83517-28a3-4df3-bdec-c3fc457d4585%2Fde97dd33-c167-4716-99c2-da62152e1180%2Fvfu18b5_processed.png&w=3840&q=75)
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 $118
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.
Rich Blue Chip's Price Structure
Quantity Purchased
Price/Unit
$350
$325
$300
1-99 units
100-199 units
200 or more units
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).
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