. A company will begin stocking remote control devices. Expected monthly demand is 800 units. The
controllers can be purchased from either supplier A or supplier B. Their price lists are as follows:
SUPPLIER A SUPPLIER B
Quantity Unit Price Quantity Unit Price
1–199 $14.00 1–149 $14.10
200–499 13.80 150–349 13.90
500+ 13.60 350+ 13.70
Ordering cost is $40 and annual holding cost is 25 percent of unit price per unit.
should be used and what order quantity is optimal if the intent is to minimize total annual costs?