Chris Sandvig Irrigation, Inc., has summarized the price list from four potential suppliers of an underground control valve. See the table below. Annual usage is 800 valves; order cost is $7 per order; and annual inventory holding costs are $2.15 per unit. O Vendor A Vendor C Quantity 1-14 15-24 25-99 100-199 200-399 400+ Which vendor should be selected and what order quantity is best if Sandvig Irrigation wants to minimize total cost? Chris Sandvig Irrigation should order units at a time from (enter your response as a whole number). Vendor B Vendor A Price $35.00 34.75 33.55 32.35 31.15 30.75 Vendor D D Vendor B Quantity 1-24 25-99 100-199 200-399 400+ Price $34.75 34.00 32.80 31.60 30.50 D Vendor C Quantity 1-49 50-149 150-299 300+ Price $34.50 33.75 32.50 31.10 Vendor D Quantity 1-149 150-299 300+ Price $34.25 33.00 31.00

Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
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Chris Sandvig Irrigation, Inc., has summarized the price list from four potential suppliers of an underground control valve. See the table below. Annual usage is 800 valves; order cost is $7 per order; and annual inventory holding costs are $2.15
per unit.
D
Vendor A
units at a time from
Vendor C
Vendor B
Quantity
1-14
15-24
25-99
100-199
200-399
400+
Which vendor should be selected and what order quantity is best if Sandvig Irrigation wants to minimize total cost?
Chris Sandvig Irrigation should order
(enter your response as a whole number).
Vendor A
Price
$35.00
34.75
33.55
32.35
31.15
30.75
Vendor D
Vendor B
Quantity
1-24
25-99
100-199
200-399
400+
Price
$34.75
34.00
32.80
31.60
30.50
Vendor C
Quantity
1-49
50-149
150-299
300+
Price
$34.50
33.75
32.50
31.10
Vendor D
Quantity
1-149
150-299
300+
Price
$34.25
33.00
31.00
Transcribed Image Text:Chris Sandvig Irrigation, Inc., has summarized the price list from four potential suppliers of an underground control valve. See the table below. Annual usage is 800 valves; order cost is $7 per order; and annual inventory holding costs are $2.15 per unit. D Vendor A units at a time from Vendor C Vendor B Quantity 1-14 15-24 25-99 100-199 200-399 400+ Which vendor should be selected and what order quantity is best if Sandvig Irrigation wants to minimize total cost? Chris Sandvig Irrigation should order (enter your response as a whole number). Vendor A Price $35.00 34.75 33.55 32.35 31.15 30.75 Vendor D Vendor B Quantity 1-24 25-99 100-199 200-399 400+ Price $34.75 34.00 32.80 31.60 30.50 Vendor C Quantity 1-49 50-149 150-299 300+ Price $34.50 33.75 32.50 31.10 Vendor D Quantity 1-149 150-299 300+ Price $34.25 33.00 31.00
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