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timer Asked: Aug 4th, 2015

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Bell Computers purchase integrated chips at $350 per chip. The holding cost is $36 per unit per year the ordering cost is $123 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. Quantity Purchased Price/Unit 1-99 units $350,100-199 units $325, 200 or more units $300. A. What is the optimal order quantity and the minimum cost for Bell Computers to order purchase and hold these integrated chips? The optimal order quantity after the change in pricing structure is.The total annual cost for Bell computers to order purchase and hold the integrated chips is?

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