- Sorur Inc. has gone out on bid for an electronic component.Expected demand is 500 units per month. The item can be purchasedfrom either Asha Manufacturing or Brian Manufacturing. Their priceschedule is shown below. Ordering cost is $25, and annual holdingcost per unit is $15.
AhsaMfg.                                                          Brian Mfg. Â
Quantity             Price/unit                          Quantity             Price/unit
1-199                   $20.00                                  1 – 299               $20.00
200 –399            $19.80                                  300 –599            $19.75
400+Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â $19.60Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â 600+Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â $19.50
What is the optimal order quantity?Which supplier should be used?
