Bell Computers purchases integrated chips at ?$350 per chip. The holding cost is ?$35 per unit...

Bell Computers purchases integrated chips at ?$350 per chip. The holding cost is ?$35 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.

1-99 units- $350

100-199- $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 (enter as whole number)

- The total annual cost for Bell computers to? order, purchase, and hold the integrated chips is.. {enter as whole number}

b. bell computers wishes to use a 10% holding cost rather than the fixed $36 holding cost in part a. what is the optimal order quantity, and what is the optimal annual cost?

-the optimal order quantity after the change in the holding cost calculation is (enter as whole number)

- the total annual cost for bell computers to order, purchase, and to hold integrated chips is (enter as whole number)

?

Expert Solution

keosha answered 1 year ago

Bell Computers purchases integrated chips at $350 per chip. The holding cost is $33 per unit...

Bell Computers purchases integrated chips at $350 per chip. The holding cost is $33 per unit per year, the ordering cost is $122 per order, and sales are steady, at 395 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.Quantity Purchased1-99 units= $350 price/unit100-199 units= $325 price/unit200 or more units= $300 price/unita) What is the optimal order quantity and the minimum cost...

Bell Computers purchases integrated chips at $350 per chip. The holding cost is $37 per unit per year, the ordering cost is $123 per order, and sales are steady at 405 per month.

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