Vendor 1 Vendor 2

Quantity Price/ lb Quantity Price/lb

1-499 17 1-399 17.1
500 500-999 16.75 400 400-799 16.85
1000 16.5 800 800-1199 16.6
1200 16.25

GIVEN
Demand 800 * 12 9600
Set up/Ordering Cost 50
Holding or Carrying Cost 0.5

Vendor 1- EOQ/Q* Ven

√2DS/H*IP
2(D)(S) (H)(IP) 2DS/H*IP EOQ/Q* D/Q(S)
960000 8.5 112941.17647059 336.07 336.00 1,428.57
960000 8.375 114626.86567164 338.57 1,417.74
960000 8.25 116363.63636364 341.12 1,407.12

Vendor 2-EOQ/Q* Vendor 2- Total Cost

√2DS/H*IP D/Q(S)
960000 8.55 112280.70175439 335.08 335.00 1,432.84
960000 8.425 113946.58753709 337.56 1,200.00
960000 8.3 115662.65060241 340.09 600.00
960000 8.125 118153.84615385 343.74 400.00
 Vendor 1-Total Cost

Q/2(IP) (P)(D) TOTAL COST

2,856.57 163,200.00 167,485.14
4,187.50 160,800.00 166,405.24
8,250.00 158,400.00 168,057.12

ndor 2- Total Cost

Q/2(IP) (P)(D) TOTAL COST
2,864.96 164,160.00 168,457.80
3,370.00 161,760.00 166,330.00
6,640.00 159,360.00 166,600.00
9,750.00 156,000.00 166,150.00