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 2,400 vavles: order cost is $10 per order; and annual inventory holding costs are $3.33 per unit. which vendor should be selected and what order quantity is best if Sandvig Irrigation wants to minimize total cost?
Vendor A Vendor B
Quantity Price Quantity Price
1--49 35 1--74 34.75
50-74 34.75 75-149 34
75-149 33.55 150-299 32.8
150-299 32.35 300-499 31.6
300-499 31.15 500+ 30.5
500+ 30.75
Vendor C Vendor D
Quantity Price Quantity Price
1--99 34.5 1--199 34.25
100-199 33.75 200-399 33
200-399 32.5 400+ 31
400+ 31.1
Annual usage: 2,400
Order Cost: $10
Annual Inventory(hold): $3..3
Which vendor should be selected and what order quantity is best if were to minimize total cost?