Bell computers purchases chips at $350 each. Holding cost is $33 per unit per year. Ordering cost is $121 per Oder and sales are steady at 395 per month.
1-99 units $350
100-199 units $325
200 or more units $300
A. The optimal order quantity after change in pricing structure is ____
The total annual cost for Bell to order purchase and hold the chips is ____
B. Optimal order quantity after 10% holding cost rather than fixed 33 holding cost
Total annual cost for bell to order purchase and hold the chips